Unless the company can reach an agreement with its financial counterparties, Syncora said it cannot remain in business and would likely be taken over by the New York State Insurance Department.

Releasing its third quarter results today, the Hamilton, Bermuda-based guaranty insurer said that its combination of significant ongoing exposure to credit default swaps, failure to reach an agreement with the financial counterparties who are holders of the CDS, and possible intervention by the insurance department, make it a possibility the company will not continue.

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