Bad idea of the year award

An easy winner, this. From the FT:

The Federal Home Loan Banking system, a government-sponsored network of US banks, is seeking to enter the so-called “monoline” insurance market to help local governments that have been hurt by the credit market storm.

In particular, some banks in the network want to offer their top-notch credit ratings to municipal infrastructure projects – and thus fulfil the role traditionally taken by monoline insurance groups such as MBIA.

Why not have them wrap structured finance too? I mean, what could possibly go wrong with pseudo public sector entities backed by taxpayers getting into an area of finance they have never been involved with before?