Financial Guaranty Insurance Company
Financial Guaranty Insurance Company (FGIC) is a monoline bond insurer established in 1983. It faced significant financial difficulties in 2008 which affected its ability to write new business. The firm was acquired in December 2003 by a consortium of investors including PMI Group, Blackstone Group, The Cypress Group and CIVC Partners.
As of March 24, 2009, it was rated "CC" by Standard & Poor's (S&P) and "Caa3" by Moody's Investors Service. Fitch Ratings had already withdrawn its rating, while Moody's announced it would remove its rating. The ratings are negative from both Moody's and Standard & Poor's
On November 24, 2009, it was released that the New York Insurance Department ordered FGIC to suspend payment on all claims due.
On April 9, 2014, the Detroit News reported that FGIC without any City of Detroit or court involvement has solicited bids for the Detroit Institute of Arts collection. The City previously hired Christies to estimate the value and worked out a plan with philanthropic groups in MI to preserve one of the Nation's best art collections. FGIC who is itself recovering from mismanagement that led it into bankruptcy, is now looking to shutdown the DIA and sell the collection to two Chinese groups among others.
Six months later, on October 16, lawyers for FGIC and Detroit disclosed in court that they had reached a settlement of FGIC's claims against the city. Under the deal, which must still be approved by the court along with other issues in the Detroit bankruptcy, the city and the state of Michigan would pay for the demolition of Joe Louis Arena, currently home to the Detroit Red Wings of the NHL. The arena site is planned to be available for transfer in 2017 when the Red Wings move into a new arena. FGIC would then receive the arena site plus an adjacent parking lot, giving the company nearly 9 acres (3.6 ha) that it would then redevelop.
- Bond Insurer Ponders Its Options. New York Times, April 15, 2008
- A Split-Up of Insurers of Bonds Is Considered. New York Times, A Split-Up of Insurers of Bonds Is Considered
- "Red Wings arena to be demolished". ESPN.com. Associated Press. October 16, 2014. Retrieved October 16, 2014.
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