Waren Buffett phoned in to CNBC this morning during Sqawk Box regarding an offer he made to insurers Ambac, MBIA, and FGIC. CNBC.com’s Warren Buffett Watch’s Alex Crippen has the story…
In a live telephone call to Squawk Box just a few minutes ago, Buffett offered to reinsure $800 billion in municipal bonds now insured by Ambac, MBIA and FGIC, effectively giving them a AAA credit rating.
Those insurers are in danger of losing their AAA credit ratings due to problems with subprime mortgages and other loans.
Buffett tells us he sent that offer to the bond insurers last week, and that he’s giving them 30 days to find a better deal.
Buffett says one bond insurer turned him down, and he hasn’t yet heard from the other two. Buffett wouldn’t say which company turned him down. He said he didn’t think regulators could do much to force the bond insurers to accept his offer, unless they took over the companies themselves.