Buffett senses opportunity in bond insurance crunch

Warren Buffett, always looking for a good deal, has thrown the bond insurers a lifeline. On CNBC no less. He says Berkshire Hathaway will reinsure the bond insurers--Ambac, MBIA and Financial Guaranty--to the tune of $5 billion. But, as the New York Times notes, the premiums would be, well, at premium rates. The reaction was somewhat less than enthusiastic. After an initial bump, traders bid down the companies. One company has apparently already turned Buffett down. Others are unsure if the reinsurance as discussed would truly help.  

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