This is why I said the bond insurers downgrade last week was not a non event. It may not have been apocalyptic like it would have been in February but it should not have been ignored either. I do not know if Meredith Whitney is right on her numbers but I do know more writedowns are coming because of it.
Citigroup Inc., Merrill Lynch & Co. and UBS AG may post further writedowns of $10 billion on their debt holdings after the two biggest bond insurers were stripped of their AAA rankings, according to Oppenheimer & Co. analyst Meredith Whitney.
MBIA Inc. and Ambac Financial Group Inc., the world's largest bond insurers, had their AAA financial strength rankings reduced by Standard & Poor's June 5, taking with them the ratings on more than $1 trillion of securities they guaranteed.