NEW YORK (AP) — Bond Insurer FGIC Corp. said Monday it lost nearly $2 billion in the fourth quarter and continues to seek a reorganization of its insurance operations and to raise capital to shore up its financial position.
The loss resulted primarily from writing down the value of securities guaranteed by FGIC that are backed by subprime and second-lien mortgages, the company said.
The company, which is owned by mortgage insurer PMI Group Inc., also said it continues to seek a “significant restructuring” of its insurance business. In February, FGIC said would like to organize a new domestic financial guarantee insurer in New York to “provide support for public finance obligations previously insured by FGIC.” A restructuring would need New York Insurance Department approval and a large amount of capital, according to FGIC.
FGIC said it has hired Goldman Sachs to advise it …
