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rffrydr
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 Posted: Tue Aug 10, 2010 12:15 pm Post subject: |
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MBIA transcript:
| Quote: | | Many of you’ll remember that one of my first actions upon returning to MBI was to set forth a five-year plan for the transformation of the company. At the same time, I also expressed my personal view that the bond insurance industry needed to be redesigned. |
Government dedicated "spinoff" remains frozen by litigation from MBIA shareholders.
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rffrydr
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Joined: 30 Oct 2005
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| Posted: Wed Jun 09, 2010 6:35 am Post subject: |
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Ambac in pre-pack: this is one of the few pieces of trash even I wouldn't pick up. Indeed the industry is questioning its very raisin-d'etre. One of the reasons Buffett bought the RR was this biz went nowhere. Why? It's a new era: government comes first.
http://www.reuters.com/article/idUSTRE65802Z20100609
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HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11260
Location: Los Angeles, California
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| Posted: Tue May 11, 2010 11:52 am Post subject: |
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Morningstar's latest notes on MBIA:
| Quote: | | Book value plummeted in the first quarter to $6.61 per share at bond insurer MBIA MBI, as a $2.2 billion pretax charge on insured credit derivatives hit the balance sheet. Most of the loss in book value came from the structured finance side of the business (MBIA Corp.), as the book value of U.S. public finance (National Public Finance Corp.) remained stable with the end of 2009. The derivatives charge was also responsible for a GAAP net loss of $7.22 per common share compared with net income per share of $3.34 in the first quarter of last year. Our take on these results is that the future for MBIA and its insurance subsidiaries remains opaque and will take a long time to play out. The company reported that although the mortgage delinquency rate that affects insured residential mortgage-backed securities has decreased a bit, it is still higher than the assumptions it was using to forecast claim payments. Actual paid claims in the first quarter were $347 million, and the company expects to pay out about $2 billion this year alone. We expect elevated payouts will continue well into the future, though perhaps at a significantly lower level than what is expected for 2010. The wild card in the mix is the recoveries that MBIA expects to garner from originators and servicers that may have included ineligible and misrepresented collateral in insured transactions. If MBIA can prove its case in court, recovery payments could be headed its way. However, it will still take years to settle this action, and MBIA will have to continue making claim payments to insureds in the meantime. We continue to think that uncertainty is extreme in the stock, and our fair value estimate is unchanged. |
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rffrydr
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Posts: 16445
Location: Sunny California
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| Posted: Fri Apr 30, 2010 6:10 pm Post subject: |
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Reborn of a corpse?
Tom Graff
Harrisburg default and Assured Guaranty
4/30/2010 3:42 PM EDT
| Quote: | | I wrote a little about the City of Harrisburg PA's impending default in this week's Bondlife (not yet published as of the moment.) Bondholders aren't going to take any losses as of yet because Assured Guaranty has backed the bond deal. I think this is a fantastic opportunity for AGO to stand behind these bonds and prove the value of municipal insurance. At first blush it seems like a negative for AGO in that they are laying out cash, but if it gets the company (and muni insurance as a concept) a little more respect, it will turn out to be the best marketing expense in the firm's history. |
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rffrydr
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rffrydr
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rffrydr
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Location: Sunny California
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rffrydr
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| Posted: Thu Aug 06, 2009 7:54 am Post subject: |
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Huge move in AIG, ABK et. al.: The write-up recovery is on.
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rffrydr
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rffrydr
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Location: Sunny California
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rffrydr
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Joined: 30 Oct 2005
Posts: 16445
Location: Sunny California
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rffrydr
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Joined: 30 Oct 2005
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Location: Sunny California
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rffrydr
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rffrydr
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Location: Sunny California
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| Posted: Mon Mar 16, 2009 8:09 am Post subject: |
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Bailout creep or bank's "ace-in-the-hole"?
| Quote: | ...The efforts have met limited success. In the fourth quarter, MBIA negotiated commutations or restructuring of four contracts on $2.7 billion of the securities called collateralized debt obligations or CDOs that have been responsible for significant losses. MBIA still holds $27.7 billion of CDOs that contain at least some troubled loans.
Brown has pushed for counterparties to negotiate more commutations.
"In almost all cases, these are the exact same large financial institutions that have already received tens of billions in government money for these exact same losses," Brown said during the company's fourth-quarter earnings conference call last month.
A group of hedge funds that hold bonds insured by MBIA filed a class action lawsuit in New York federal court Wednesday that seeks to reverse the restructuring. A lead attorney for the suit said he is trying to persuade derivatives counterparties to join the suit. |
http://money.cnn.com/news/newsfeeds/articles/djf500/200903131723DOWJONESDJONLINE000909_FORTUNE5.htm
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rffrydr
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