boa and wach both reported abysmal earnings… those stories got drowned out by the rate cut. maybe that’s what got the markets in a tizzy? whatever, some bit of info got out, info that spooked the institutionals and insiders, big ben included. i’m not so sure that the market move instigated the cut. rather, the markets got a jump on the action. and the upswing in reaction to the cut was dominated by the outsiders and casual gamblers.
another bit of news, on mbia:
NY Insurance Dept. Working With Bond Insurers To Stabilize Market
11:33 AM ET – Dow Jones News
NEW YORK -(Dow Jones)- The New York Insurance Department said Tuesday it is closely monitoring the health of bond insurers and working closely with companies to stabilize the market.
The department has played an active role in trying to shore up the sector, which guarantees some $2.4 trillion in debt, the bulk of it issued by municipalities that would otherwise have to pay higher rates. The department previously invited Warren Buffett’s Berkshire Hathaway (BRKA BRKB) to open a new bond insurance company in New York and gave quick approval to a capital-raising plan for top bond insurer MBIA Inc. (MBI).
Without being specific, the department said more injections of capital are possible.
“The Department is currently in discussions with other parties about possible future capital investments,” the department said in a release.
