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Buffett News Lifts Stocks

Reports that the billionaire has offered to insure $800 billion in municipal bonds boosted sentiment Tuesday, though some skeptics emerged
SAUL LOEB/AFP/Getty Images

Stocks moved higher Tuesday as billionaire investor Warren Buffett waded deeper into the troubled bond insurance business, and the federal government and mortgage lenders announced another effort to stabilize the housing market.

Buffett's Berkshire Hathaway (BRKB) offered bond insurers an extra level of insurance on $800 billion in municipal bonds, he told CNBC on Tuesday. He made the offer to Ambac (ABK), MBIA (MBI) and FGIC, all firms stung by exposure to risky debt, and said one of those firms had already rejected his offer.