Don't worry too much. MBIA will have to capitalize the new insurance unit. You just can't go out and start writing insurance without the capital need to make good in the event of default. If there is no capital the rating agencies will note it with an appropriate rating (not AAA).
It is capitalized with 2.9 + 2.1 billion.....Jay Brown was on CNBC at noon. Dinallo was on at 8:30 to say that his office had approved the split (MBIA and National) and that the 2.9 billion was from a premium reserve account.
the only remaining issue is the rating....it was capitalized in order to achieve AAA.
And now the news is that ABK is also in final stages of capitalizing Evergreen for same purpose.
AGO did well in the afternoon even with the news of competition.