Feb 6, 2008

Bernanke closely monitoring bond insurers

Given the adverse effects that problems of financial guarantors can have on financial markets and the economy, we are closely monitoring developments. In addition, we are closely monitoring the potential effect of downgrades of financial guarantors on bank holding companies, state member banks, and other institutions supervised by the Federal Reserve. We believe we have the appropriate tools to assess exposures to bond insurers of the banks that we supervise.

~ Fed Chairman Ben Bernanke, "Fed Closely Monitoring Bond Insurers," Bloomberg, February 6, 2008

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