Scanning 7402 I noted:

Dinallo needs to convince a court to order rehabilitation, and he needs to provide that court with a plan of what he intends to do.

Grounds include failing to obtain capital deemed necessary, but I am not clear whether Dinallo would need to get a court to declare that additional capital would be necessary beforehand.

One explanation is that the monolines think that they Dinallo could successfully argue that they are insufficently capitalized and hence require rehabilation. If splitting off the SF business is the only way to attract fresh capital, the monolines will do it.

The funny thing about this whole debacle is that the pundits pass off the excess as a one time item and then are ready to value the economy on a normalized basis next quarter in typical Wall Street fashion. That trade will be proven bankrupt.

The early cycle trade crowd is really tragicomic. Tragic because these people actually believe it. I mean seriously, the best we can do is facebook/myspace only to have google come out and say we are having diffiulty monotizing social networking. No, you don’t say. Say what you want of the military industrial complex but at least it produces things, American. We are having back channel meetings with Chinese retired Generals (FT today) to sooth rising tension. The US needs a serious ass kicking and even that is a longshot.

The WSJ became a puppet mouthpiece when it let itself be bought.

If banks cared one whit about mistrust and uncertainty, they would mark their level 3 portfolio to market and observe how insolvent they actually are. Investment bankers only prattle on about trust and faith when it would benefit them for someone else to be revealing.

I don’t buy this at all. The fact that banks are dragging out this tired refrain shows the true state of the monolines — it’s even worse than Ackman’s claims.

A vehicle hit a fire hydrant in front of our house. And adjuster called a restoration company to help out. It turned out that the owner of the restoration company was the vehicle’s owner. The restoration company screwed the job by adding more more hummidity into he house. Our insurer made repairs but wont release costs for the work done – they hired the restoration company…we cant sue the vehicle’s owner because again no quantum on the costs. We are out about 50k. Oh well.

I have a new saying: Crime does not pay, Insurance does.

Based on my experience and in my opinion, the only thing an insurer will do is cover its petard and deny everything.

LOL!!

I guess these clowns have gotten so used to the Federal government (namely Congress) favoring private wealth at the expense of the common good that they now consider this situation as a God-given right.

Oh my!

When the monolines were solely in the muni insurance, they had the highest revenue per employee on the PLANET. Their risk-adjusted profitability was way north of anything else in the financial industry. But there was one little problem; the business lacked sex-appeal. It was very hard for these guys to impress anyone at the cocktail party when introducing themselves with: “I’m in the municipal insurance business”. Talk about a snoozer!

Bored out of their wits, prodded by greed and ego, they “smartly” expanded in a line of business they clearly had no idea how it worked. Talk about smarts…Several years later, here we are, knee-deep in a mess with no historic equivalent.

And of course, the Ed board of the WSJ wants the taxpayers to, once again, bail out the financial BS from the ego-driven idiots (that would be management of the monolines) who are in no small part responsible for this cluster of you-know-what.

Public good at the service of private interests? Only when ALL private interests are served…and that MUST include you and I, the taxpayers!

Smartly. That’s the tell tale word in this WSJ editorial. The WSJ doesn’t give a hoot about the sanctity of contract. They care for one thing and one things only: greed.

Smartly. Only a passionate commitment to a fact-free and analysis-free ideology of greed for its own sake could support the use of this word to describe what the insurers did here.