by Calculated Risk on 1/24/2008 05:16:00 PM

No, not another Buffett rumor!

From the Evening Standard: Billionaire to rescue of crisis-hit US insurer

Billionaire vulture fund operator Wilbur Ross is in takeover talks with Ambac, the troubled bond insurer whose recent financial crisis was a major factor in this week's dramatic US interest rate cut.

The Evening Standard has learned that a deal for the stricken .... company ... could come within the next two weeks.

Insiders said the negotiations are serious and progressing well.
...
"The monoline insurance industry's success depends on the reversal of some very unfortunate errors," Ross said. "It took what was a very safe industry and, through quite terrible misapplication of risk management, caused the troubles we see today."

He added that any deal would depend on whether "you really have your arms around the degree of insolvency" in the sector.

If a deal depends on having "your arms around the degree of insolvency", then my guess is there will be no deal.