Monoline Malaise

Yves Smith at Naked Capitalism had a good post on the financial guarantors. It dealt with MBIA’s new refusal to make a capital contribution to its subsidiaries. Here’s the company’s take on the matter. And here was my comment at her (Yves’) blog: David Merkel said… Were I Dinallo, I would refuse to allow them to set up a new monoline. He has that authority for his own state. I might also take the existing companies into conservation. Then, let MBIA take their spare capital and try to set up a