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MBIA Inc. Message Board

  • simply_interested simply_interested Feb 11, 2010 11:58 AM Flag

    Ugly News for Longs

    NEW YORK, Feb 11 (Reuters) - Insurer MBIA Inc (MBI.N) must defend a lawsuit by Aurelius Capital Master Inc and other funds challenging its 2009 decision to place its municipal insurance business into a new unit, a U.S. judge ruled on Thursday. MBIA had asked for the suits to be dismissed. This ruling legitimizes the suits in the eye of an independent adjudicator, not an ex-insurance regulator with political aspirations. This is going to get ugly.

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    • Vettes,

      just to let you know what making coin looks like:

      covered all shorts and sold longs in all shorting etfs today

      bought stld @ 15.25, you see the day low? Yup that was me :) $

      bought ep @ 10.00... Watch, admire, learn if your slow head can do so.

    • You may want to inform your buddy (or alter ego) h_azarm. He told everyone above that your were penniless after getting wiped out in December. Looks like you have zero allies left (other than your other personalities sybil, msacche, and getshortyI).

    • I'm calling out Jbd who's a dick^head. And once in a while I call onslow-head Vettes to collect my cut, because he's my hooker that i pimp out to the streets.

    • Not bad vettes. You sound like your speaking from personal experience.

    • vettes,

      Who's msacche?

      I'm pretty sure you must be long of mbi as of yesterday, am i right??? Slow heads get hammered in drops like these.

    • I guess my questions are:

      1. How large are the liabilities ?

      2. Is Cutwater bankruptcy-remote from the Holding Company ? If I am not mistaken NPFG is supposedly bankruptcy remote from Holdco, at least in part due to its status as a subsidiary of a subsidiary...but I am going on distant memory on that one...

      What a farce the U.S. legal and financial systems have become...


    • The liability for shortfalls in the GICs at the ALM unit remains irrespective of the AM sub's place in the corporate structure, as it is an insurance policy..

      The dynamics of the restructuring and its benefit are not very clear to me. I will look at this a bit further.

    • Are you're speaking of our multi-headed poster msacche/sybil/getshortyI/getshortyII ?


    • It was ugly the day that an oxymoronic, ethically-challenged New York regulator allowed assets to be spirited away from an insurance company right in the middle of an obvious financial crisis.

      The restructuring action was absurd, repulsive, and an indicator of just what a disgrace our supposed legal and market systems have become.

      Is it any wonder that American households and businesses will continue to strategically default on their own supposed obligations when insurance companies or other financial companies use and abuse laws and regulators to dodge their own responsibilities ?

      MBIA finds itself in the la-la land of trying to force some of its counterparties to perform on contracts it would like to have enforced, while simultaneously dodging contracts (through the abusive actions of the NY regulator) which it does not want to perform.

      There are lots of side stories and drama's here, but in the end MBIA was a dubious insurance enterprise which prospered due to a crooked rating system. When the rating system came crashing down, all the rats who benefitted from the corruption start pointing their rat claws at each other...

      They are all culprits - the raters, originators, securitizers, the insurers, and even the institutional investors that sat idly by with the full knowledge of the corruption...

      And now they are all feeling pain...

      Of course fools want to pick sides...usually not based on some principle, but based on some foolish gamble...

      I suspect MBIA's price continues to flounder near its bottom because the market believes the restructuring will be overturned and the originator recoveries are speculative or not enough to overcome the gathering defaults...

      In any event, its one thing to bet that MBIA will survive, but the idea that it is a virtuous business is laughable. Just an arbitrage of a corrupt ratings scheme that never added value overall, but made some investors and employees wealthy...while skimming value from ignorant taxpayers throughout the land...

      Make your bets, but there was no virtue in MBIA's business model...


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