Some of the world’s largest banks have joined forces to create a consortium that aims to create a rescue plan for the struggling mortgage bond industry. UBS, Citigroup, Barclays and the Royal Bank of Scotland are just some of the banks working on the £7.6 billion rescue plan. The consortium is to work alongside the New York Insurance Department as they aim to help bond insurers .
The first task facing the consortium will be to deal with the lack of capital at Ambac. America’s second largest insurer has failed to raise the funds required in recent times, with January seeing a £500 million shortfall in capital. Other leading insurers are facing similar or greater claims, but have been able to raise the capital needed.
Whilst the plan will undoubtedly be of benefit to insurers, it remains to be seen whether it will be enough. Some experts have estimated that as much as £100 billion will be required to help bail out bond insurers.
Leading Banks Join Forces to Help Insurers
Financial Services > e-banking > Banking news
Leading Banks Join Forces to Help Insurers
Fri, 08 Feb 2008
Recommended links
The Essential Banking GuideLeading Pension Providers
Top Financial Advisors
Bad Credit Loan Lenders
Debt Solutions
UBS Shunned by Indian Central Bank
Rivals Prepare Revised Offers for Bank
| Banking news |
|---|
| Banks failing on online fraud says MPs report - Tue, 05 Apr 2011 |
| Lloyds TSB is to change the interest rates on its Vantage current account - Thu, 31 Mar 2011 |
| Contactless debit cards from Lloyds TSB - Tue, 29 Mar 2011 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company