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MBIA Inc. Message Board

  • x_ibmresearch_employee x_ibmresearch_employee Aug 25, 2011 11:55 AM Flag

    BAC should buy MBI...then drop claims

    Would be a lot cheaper than paying anywhere from 3-9 billion in putbacks.

    That would be shrewd.

    They could do it with Buffet bucks from the $5B in preferred shares.


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    • This is what I suggested in my posting of August 15th, see "$4B settlement before Aug 18th preceding."

      Makes sense to me or some variation. We should get the next generation of investment banking brains at Harvard Business School to cut their teeth on means and methods of resolving the Countrywide MBIA conflict. There has to be an inventive creative proposal that would be beneficial to all.

      With MBI's market cap at less than $1.4 billion and settlement numbers from BAC running upwards of $4 billion there has to be an "out of the box" solution.

      • 1 Reply to wedbush80
      • they cant buy it...

        aside from the legalities, MBIA ABV is $37ish (only taking into acct $2.7B in putbacks)

        Warburg/Fairholme/Other big Hedgies/Mgmt; own well more than half of the company.

        That means BOA would have to make a deal with mgmt at a price level they believe is a better representation of the companies value, rather than the current share price.

        Management believes the value of this company is well above the ABV $37.

        That is aside from all the legalities/specifications that would be HORRIBLE to both parties...

        It would NEVER happen.

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