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Warren Buffett has offered to buy back the insurance for debts in 800 billion

14 February 2008

American investor-billionaire Warren Buffett has offered to assume responsibility for 800 billion liabilities of local USA authorities, informs Bloomberg. For the time being these obligations are insured by three largest insurers of bonds - MBIA, Ambac and FGIC.
Buffett’s Company, Berkshire Hathaway, is ready to invest in purchase of the insurance 5 billion dollars. His offer has already been rejected by one of the companies; two others have not given the answer yet.

Warren Buffett is going to take advantage of a difficult situation to catch the most profitable and reliable insurance papers of municipalities. At that the insurance companies will stay with the least reliable debts, having lost the chances to keep AAA rating.

The companies, which insure bonds, have at the moment had negative profit for a total sum of 41 billion dollars.


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