Warren Buffett got to play the hero recently when he offered to re-insure $800 billion of bonds for MBIA, Ambac Financial and Financial Guaranty Insurance. Buffett's plan would allow the trio to regain a firmer financial footing and inject confidence into the debt markets.
There's a catch though: Buffett only wants municipal bonds, which are at relatively low risk of defaulting. He's offering to insure low-risk debt for a hefty fee.
Big-money bets of the billionaires