The bond insurers will soon be subject to new accounting rules intended to bring greater transparency and consistency of reporting practices at a time that is perhaps the most difficult in the industry's history, an environment most recently illustrated by the first-quarter loss reported by Financial Guaranty Insurance Co.

On May 23, the Financial Accounting Standards Board (FASB) issued a new policy intended to bring increased transparency and consistency to the financial guaranty industry. The new rules, outlined under FASB Statement No. 163, require a number of changes for insurance companies that write financial guaranty contracts, like the bond insurers.

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