MBIA loses $2.4 billion
MBIA (MBI) posted another big loss. The bond insurer lost $2.4 billion, or $13.03 a share, for the first quarter ended March 31, compared with the year-ago profit of $199 million, or $1.46 a share. The latest quarter included a $3.6 billion mark-to-market writedown on MBIA’s insured credit default swap portfolio. The news, which follows a $2.3 billion fourth-quarter loss, comes a week after CEO Jay Brown insisted the company doesn’t need new capital and warned shareholders that the company was struggling to arrive at a valuation for the insured credit default swap portfolio. “I can tell you with great certainty that no two people could ever agree on this calculation,” he wrote, “so don’t be surprised when external sources propose wildly different possibilities for MBIA.” Brown is due to host a conference call at 2 p.m. EST, so the external sources may have their say then. MBIA shares fell 12% in early trading Monday to $8.30.
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