It was once a staid business. Now, bond insurance is one more reason--and a big one--for the markets to fret. We've been covering the travails of MBIA, Ambac and ACA. Things seem to be moving to some sort of climax, the New York Times notes. Banks, the likes of Goldman Sachs and Citigroup, are meeting with regulators to try and formulate some sort of capital injection plan. The hope is to prevent a massive downgrade of bonds of the insurers--already tiny ACA has been downgraded to predictable results for munis. The fear is that another massive round of bond grades happens--at the worst possible time. Which is exactly what we don't need. Looking good in all this: Warren Buffett. He started his own bond insurance firm unencumbered by all the really toxic debt.

For more:
- here's the New York Times article