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Another breaking news...how many more to come tonight ?

Bond insurer FGIC reports $1.89 billion loss, eyes re-org(6:24 am ET)


LONDON (MarketWatch) -- Bond insurer FGIC Corp. reported a $1.89 billion quarterly loss, mostly on loss and loss adjustment expense reserves and mark-to-market losses recorded for the quarter. The increase in loss reserves for the quarter stemmed from the rapid and substantial deterioration during the quarter in the performance of certain RMBS and ABS CDO transactions written primarily in 2006 and 2007. FGIC anticipates that any claims relating to these transactions will be made over a period of years. FGIC has ceased writing new financial guaranty business for a period of time to preserve capital and has hired Goldman Sachs to provide advice. In addition, FGIC has proposed a significant restructuring of its insurance operations to the New York Insurance Department, including the organization of a new financial guaranty insurer to be domiciled in New York to provide support for global public finance and infrastructure obligations previously insured by FGIC and to write new business to serve those markets. The losses at FGIC led PMI Group (PMI: news, chart, profile) , which holds 42% of the firm, to report a $$1.01 billion, or $12.51 per share, fourth-quarter loss.