LONDON (Bloomberg) - Bond insurers including MBIA Inc., Ambac Financial Group Inc. and FGIC Corp. are in talks with banks about removing $125 billion of insurance on risky debt securities, the Financial Times reported.

Talks on ending the insurance contracts, sold by bonds insurers as credit default swaps, could take months, the FT said.

Matthew Elderfield, chief executive of the Bermuda Monetary Authority, which regulates a number of bond insurers, told the newspaper an agreement could lift the "shadow of uncertainty'' surrounding the monolines sector.