RobertB
January 18th, 2008, 01:52 PM
After Ambac, It's Europe's Turn
Lionel Laurent, 01.18.08, 10:25 AM ET
Related Stories
Subprime Shakes Return To Europe
LONDON -
The latest chapter in the subprime saga, which threatens to hit the insurance sector with billions of dollars in mortgage-related bond claims, hurt European financial stocks Friday.
Franco-Belgian bank Dexia (other-otc: DXBGF - news - people ) fell 59 euro cents (87 cents), or 3.7%, to 15.41 euros ($22.60), while France's Natixis (other-otc: NTXFF - news - people ) slipped 37 euro cents (54 cents), or 3.1%, to 11.66 euros ($17.10), during midday trading in Paris.
Fears over the two banks' bond insurance operations stemmed from Thursday's worries over American insurers Ambac Financial (nyse: ABK - news - people ) and MBIA (nyse: MBE - news - people ), which have been targeted with a possible credit rating downgrade by Moody's. (See "You Should Worry About Ambac")
Both Dexia and Natixis have been under scrutiny for their bond insurance businesses since last year. Dexia's American subsidiary reported a $121.8 million loss in November following mortgage-related insurance write-downs of $191 million. One week later the two French banks that control Natixis said they would take over its bond insurance unit with a $1.5 billion capital bail-out. (See: "Natixis Gets Bailout From Its Parents")
Last November reinsurer Swiss Re (other-otc: SWCEF - news - people ) said it would have to pay out $878 million to cover the losses of one of its clients, whose portfolio of asset-backed securities had fallen in value. (See: "Subprime Loss Is Swiss Re's… Loss")
http://www.forbes.com/home/markets/2008/01/18/bond-insurance-europe-markets-equity-cx_ll_0118markets08.html
Lionel Laurent, 01.18.08, 10:25 AM ET
Related Stories
Subprime Shakes Return To Europe
LONDON -
The latest chapter in the subprime saga, which threatens to hit the insurance sector with billions of dollars in mortgage-related bond claims, hurt European financial stocks Friday.
Franco-Belgian bank Dexia (other-otc: DXBGF - news - people ) fell 59 euro cents (87 cents), or 3.7%, to 15.41 euros ($22.60), while France's Natixis (other-otc: NTXFF - news - people ) slipped 37 euro cents (54 cents), or 3.1%, to 11.66 euros ($17.10), during midday trading in Paris.
Fears over the two banks' bond insurance operations stemmed from Thursday's worries over American insurers Ambac Financial (nyse: ABK - news - people ) and MBIA (nyse: MBE - news - people ), which have been targeted with a possible credit rating downgrade by Moody's. (See "You Should Worry About Ambac")
Both Dexia and Natixis have been under scrutiny for their bond insurance businesses since last year. Dexia's American subsidiary reported a $121.8 million loss in November following mortgage-related insurance write-downs of $191 million. One week later the two French banks that control Natixis said they would take over its bond insurance unit with a $1.5 billion capital bail-out. (See: "Natixis Gets Bailout From Its Parents")
Last November reinsurer Swiss Re (other-otc: SWCEF - news - people ) said it would have to pay out $878 million to cover the losses of one of its clients, whose portfolio of asset-backed securities had fallen in value. (See: "Subprime Loss Is Swiss Re's… Loss")
http://www.forbes.com/home/markets/2008/01/18/bond-insurance-europe-markets-equity-cx_ll_0118markets08.html