Revolt Of The Insurers

Can't blame 'em:

Ambac Assurance, whose parent company filed for bankruptcy earlier this month, said Thursday that banks that assembled a dozen poor performing mortgage bonds that it insured must pay for some of those losses.

...The company may be riding the growing momentum of mortgage "putbacks" - forcing banks to buy back mortgage securities - driven by Pacific Investment Management and other big investors.

...JPMorgan Chase has estimated the cost to the banking industry from putbacks could be as high as $90 billion.