FGIC Corporation, the parent company of Financial Guaranty Insurance Company, has commenced discussions with potential investors and other parties regarding strategic alternatives the company is exploring that would enable FGIC to enhance its capital position and protect its policyholders.
The company is optimistic that within the coming weeks it will have a course of action to propose to its board of directors. FGIC has retained Goldman Sachs to assist in these efforts.
FGIC said that the strategic alternatives it is exploring include raising capital for a newly established triple-A guarantor dedicated to the global public finance business. The company would also assume FGIC’s existing public finance and international infrastructure business.
FGIC said it believes that its strategic alternatives are consistent with the goals of the New York Insurance Department (NYID) with regard to the company and its policyholders. The company said that it continues to work closely with superintendent Dinallo and the NYID as it progresses with its negotiations.