Business

The second rejection for Warren Buffet
by Milota Sidorova

After a hard hit for Ambac Financial Group, Inc., MBIA and other bond guarantors by subprime mortgage financial crisis in late 2007, continuing to the first months of 2008, a rescue from American billionaire Warren Buffett was offered. Buffet, the Berkshire Hathaway' s chairman and CEO made an offer to reinsure 800 billion dollars in municipal bonds to Ambac Financial Group, Inc.,, MBIA and Financial Guaranty Insurance Co. He announced his interest to the municipal bond reinsurance sector in December 2007. Along with lowering Ambac' s Fitch credit rating from AAA ( the highest) to AA, the other bond guarantors were forced to take huge write offs on corporate bonds and complex financial structures in the subprime otherwise face the high risk the permanent mortgage crisis. The offer was released on Tuesday's morning during the telephone interview on the CNBC. Three candidates got a one month to reply either to make a better deal. Soon after, one of the companies claimed down the offer and Buffet has not leak which one. Berkshire Hathaway a conglomerate holding company headquartered in Omaha, Nebraska, U.S., operates in a diverse range of business, such as candy production; retail, home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper publishing; manufacture and distribution of uniforms; and manufacture, import and distribution of footwear. Hopeful billionaire still could count with two horses, when he has been rejected once again. Now the official deny came from Ambac. During a press statement the spokesman Peter Poillon said that the Berkshire Hathaway's offer would not go along with their interests neither policyholders.

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 12:28 PM