FGIC is expected file an application with the New York State Insurance Department to separate into two companies, dividing up its municipal bond business and structured finance business. While FGIC has not submitted any details on the suggested plan, the insurance department is expecting a formal application soon, according to published reports. Congress has been concerned that a municipality downgrade would make it more expensive for cities and states to borrow money and is encouraging FGIC to file for a separation, reports said.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.