In an interview on CNBC, Buffett said his Berkshire Hathaway holding company made the offer of reinsurance to bond insurers Ambac Financial Group Inc., MBIA Inc. and Financial Guaranty Insurance Co. Buffett says one firm rejected his offer and he is still waiting to hear from the other two. He did not say which was which.
The nice part? This will certainly add some stability to credit markets.
The scary part? A single private investor with that much power, indirect power as it may be, over the muni bond market. And, Buffett himself admits he’s not Santa Claus:
“When I go to St. Peter I will not present this as some act that will entitle me to get in,” Buffett said on CNBC. “We’re doing this to make money.”
How much money, and how? Will he use this experience to further his touts as to which city’s or county’s bonds to buy?
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