Troubled bond insurers shouldn’t expect any financial backing from Warren Buffett’s holding company.
Buffett told Fox Business News that Berkshire Hathaway Inc. won’t invest in Ambac Financial Group or MBIA Inc.
“We could have some kind of insurance transaction with them, but we will not be investing in them or any other bond insurer,” Buffett said to Fox.
Buffett’s spokeswoman said he wasn’t available to comment further.
Late last year, Berkshire launched a new bond insurance business to take advantage of the credit problems other bond insurers have been having.
Berkshire’s new bond insuring division has a “AAA” credit rating and a solid balance sheet. Buffett said Berkshire’s new bond insurer had already done a couple of deals.
Ambac’s credit rating has been downgraded, and investors are waiting to see whether MBIA’s credit will also be downgraded.
Berkshire owns insurance, furniture, jewelry and candy companies, restaurants, natural gas and corporate jet firms and has major investments in such companies as The Coca-Cola Co. and Wells Fargo & Co.
On the Net:
Berkshire Hathaway Inc.: www.berkshirehathaway.com