Law360, New York (February 20, 2009, 12:00 AM ET) -- Like a row of cascading dominoes, numerous players in the financial system have fallen in the wake of the mortgage-backed securities market crisis — including cities, towns, school districts and other offerers of municipal debt.
The common link that tied the fate of municipal issuers to the problem-ridden mortgage market is bond insurance, which many cities, sewer districts, utilities and other public entities need to help lower their borrowing costs.
Bond insurers, also known as monoline insurers, including MBIA Inc., Ambac Financial Group Inc., CIFG Guaranty,...
Municipal Efforts Suffer Amid Bond Insurance Woes
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