Rumors circulating around the market suggest the possibility of bailout plans by a bank consortium as well as potential reinsurance contracts to aid struggling guarantors. Last week Warren Buffett even went as far as to make a public offer to reinsure $800 billion in municipal bonds that are currently insured by Ambac, MBIA and FGIC.

However, analysts said Buffett's latest public offer to reinsure these bonds will provide no such comfort to the monolines and might not supply a favorable boost to their ratings.

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