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To: 10K a day who wrote (104436)	2/12/2008 8:39:12 AM
From: Paul Kern	Respond to of 306849

Buffett Offers To Reinsure $800B In Muni Bonds To Help Insurers Last update: 2/12/2008 8:27:49 AM NEW YORK (AP)--Billionaire investor Warren Buffett is offering to help out troubled bond insurers by offering a second level of insurance on up to $800 billion in municipal bonds. In an interview on CNBC, Buffett said his Berkshire Hathaway (BRKA BRKB) holding company made the offer of reinsurance to bond insurers Ambac Financial Group Inc. (ABK), MBIA Inc. (MBI) and FGIC. Buffett says one firm rejected his offer and he is still waiting to hear from the other two. Bond insurers write policies that promise to cover payments to bondholders if the entity that issued the bonds defaults. Reinsurance provides a second level of insurance on those bonds. The offer would only back municipal bonds, Buffett says, and not other risky and complicated financial instruments. (END) Dow Jones Newswires February 12, 2008 08:27 ET (13:27 GMT)