FGIC


Also found in: Acronyms.

Federal Guarantee Insurance Corporation

A private company providing financial guarantee insurance for different types of transactions. For example, an insurance policy may cover a lender from liability resulting from the failure of the borrower to repay the loan. The FGIC originally provided this insurance exclusively for municipal bonds, but expanded into different transactions, such as IPOs. Clients pay the FGIC the appropriate premium in exchange for a guarantee of repayment in case of default; this increases the bond's credit rating and, usually, decreases its interest rate. The services that the FGIC provides are similar to sureties or co-signed loans.

Financial Guaranty Insurance Corporation

A private company providing financial guarantee insurance for different types of transactions. For example, an insurance policy may cover a lender from liability resulting from the failure of the borrower to repay the loan. FGIC originally provided this insurance exclusively for municipal bonds, but expanded into different transactions such as IPOs. Clients pay FGIC the appropriate premium in exchange for a guarantee of repayment in case of default; this increases the bond's credit rating and usually decreases its interest rate. The services FGIC provides are similar to sureties or co-signed loans.

FGIC

References in periodicals archive ?
The recent agreement will resolve pending litigation, as well as outstanding and potential claims by FGIC related to alleged representations and warranties breaches and other claims involving such securitisations.
According to one consultant, it will be difficult for FGIC to come out of rehabilitation and return to writing insurance for the bond market because much of that business has dried up.
FGIC had two floors at 125 Park Avenue, but renewed and doubled its presence in the building about two years ago, a source said, converting its existing space and two new contiguous floors into an elegant, nearly seamless installation.
A potential financial bailout of New York-based FGIC is being led by Calyon, the investment-banking unit of French bank Credit Agricole SA.
FGIC entered into Chapter 11 Bankruptcy protection in 2010 after a series of quarterly losses due to its insuring of residential mortgage-backed securities from 2005 through 2007.
Upon the successful completion of the Offer, the advisory committee will (i) recommend a special litigation advisor to aid FGIC in its claim efforts in connection with the Recoveries Trust to be established as provided in the Offer and (ii) propose a prospective nominee for the board of directors for FGIC.
In addition, FGIC has informed the Offeror that the New York State Insurance Department has indicated that it will not permit FGIC to consent to the extension of the Offer beyond 11:59 p.
The RMBS was insured by FGIC primarily in 2005, 2006 and 2007, and the RMBS performance continued to deteriorate during the second quarter.
As under the terms of the original offer, the Offeror is offering to exchange the Eligible Insured Securities for a combination of cash and certificates generally representing the right to receive distributions of an amount equal to the principal and interest distributions made on the underlying Eligible Insured Securities without the benefit of the related existing FGIC insurance policy.
NEW YORK -- FGIC Corporation (the "Company"), a privately held insurance holding company, announced today that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York.
As of July 28, (i) Eligible Insured Securities representing $2,495,379,545 in current unpaid principal balance measured as of April 30, 2010 have been tendered into the offer, (ii) non-binding agreements have been reached by the Offeror and/or FGIC and Eligible Insured Securities holders to tender Eligible Insured Securities totaling $121,808,237 in aggregate current unpaid principal balance measured as of April 30, 2010, and (iii) letters of transmittal have been completed, although the Eligible Insured Securities have not yet been delivered, with respect to Eligible Insured Securities totaling $846,909,885 in current unpaid principal balance measured as of April 30, 2010.
NEW YORK -- First paragraph, second sentence should read: (ii) non-binding agreements have been reached by the Offeror and/or FGIC and Eligible Insured Securities holders to tender Eligible Insured Securities totaling $121,808,237 (sted $590,028,174); and third sentence should read 34.