Financial Guaranty Insurance Co., a major bond insurer, has notified the New York State Insurance Department that it will request to be split into two companies.
One of the firms would likely retain much of the business of insuring structured finance bonds such as those backed by mortgages, which have come under severe pressure due to the housing market slowdown, according to a person familiar with the matter.
The other company would likely retain most of the municipal bond insurance business, which is stronger, the person said.
Good move. Likely only chance to save the muni business. the other side is probably doomed.