WASHINGTON–Bond insurers would face increased scrutiny under legislation proposed today by Rep. Barney Frank, D-Mass., who added the threat of the federal government taking some of the market.
His announcement came as two bond insurers–Ambac and MBIA–lost their "triple-A" financial strength ratings at Moody's.
A provision in Rep. Frank's bill, the Municipal Bond Fairness Act, or HR 6308, calls for the U.S. Treasury to collect data on municipal bond insurers, including their financial soundness, concentration, risk management and underwriting standards.
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