Robbing from Peter to Pay Peter

Jan. 24 (Bloomberg) -- New York regulators are pushing the biggest U.S. financial institutions to rescue bond insurers, led by MBIA Inc. and Ambac Financial Group Inc., and avert credit- rating downgrades that may further disrupt financial markets.

The insured are insuring the insurer. It would be funny if it weren't serious.

They won't have to write down their AAA junk because they will provide money to be given back to them if the bond issuers default. I think some New York regulator is very cynical and has a very weak sense of the absurd.

via Atrios