Buffett On the Prowl

Mr. Buffett sees opportunity in the Muni bond insurance business and throws out a bid for business.
Bloomberg has the story:

Billionaire investor Warren Buffett said he offered to shore up $800 billion of municipal bonds guaranteed by troubled MBIA Inc., Ambac Financial Group Inc. and FGIC Corp. in a bid to gain 33 percent of the debt insurance market.

Apparently one of the firms has already rejected the deal. But regulators and municipalities are going to be all for it. This move won't help the CDO mortgage market but it would stop the problems in the muni market and that means one less risk of cascading credit woes. A good deal for Buffett, a good deal for the public and for regulators and tough sh__ for the shareholders and management of the companies listed above.

Video interview with Warren Buffett from the Financial Post in Canada