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November 23, 2007 (LPAC)--LPAC warned you on August 12, 2007 that "Monolines," the insurance companies that insure bonds, including mortgage back securities and municipal bonds would be going under in the financial collapse--and now the bailouts are beginning to publicly surface. But, any sane individual following LaRouche's forecaste knows that the collapse already happened.

Banque Populaire and Caisse d'Epargne, who control the French lender Natixis are to inject $1.5 billion into the CIFG, a monoline insurer for the French bank, Natixis, in a desperate attempt to keep the insurer's credit rating up at the AAA level, the London Independent reports today.

Meanwhile Bloomberg reports that the New York based, Monoline Financial Guaranty Insurance Co. (FGIC) was given three weeks by the Fitch Ratings agency to come up with proof that it should not have its rating reduced. FGIC is jointly owned by PMI Group Inc, the U.S.'s second largest U.S. mortgage insurers, The Blackstone Group and the Cypress Group. It insures $315 billion worth of bonds, including $30 billion of mortgage backed bonds and $25 billion of collateralized debt but only had $5 billion in capital reserves as of September 30. Fitch says New York-based FGIC, the fourth-largest debt guarantor, is the most vulnerable in the industry.

The monoline insurers are now backing $2.4 trillion of securities whose own ratings will suffer if the monolines' ratings go down.