"Ackman did do a good job in alerting the world"...or did he go on a crusade and show his powerpoint presentation to anyone that would listen?
Also, one can argue that the third downturn in November was a direct result of Moody's downgrade (late, and following several letters sent by Ackman, who had a vested interest in killing these stocks with his short positions).
Also, running around and calling a business insolvent is a bit of a stretch and might be sanctionable by the SEC. To say that they're overvalued is one thing, but to call them insolvent is like calling fire in a crowded theater, causing panic and adverse systemic reactions.
And talk about adding insult to injury, with the addition to Target, Ackman made an investment in General Growth Properties. I wonder if GGP's bonds are insured.
Bla, bla, bla......fools want to make the conversation about Ackman - the guys a portfolio manager, has his hands in a thousand transactions. Fools can easily find a way to convince themselves of whatever they want to make themselves feel better, but at this point MBIA's failures and corruption are out of the bag....none of that matters anymore.
Obviously he did have a conflict of interest when he was running around presenting his view of MBIA's corrupt and failing business model. So what, everybody knew about the conflict of interest....it was fully disclosed.
But fools don't care about reality.
As far as calling MBIA insolvent, he is most likely correct. It is likely that the value of MBIA liabilities exceed the value of MBIA assets today. And it was almost without doubt that it was true when he said it.
Do you think the collusion with regulators to sell equity was all fun and games ?
No, they knew the company was insolvent and they needed to inject equity to avoid having the world know it too, with the aid of Ackman's cries.........
Do fools even understand what has occurred here ?
MBIA became a corrupt scheme which relied on a corrupt ratings system.
MBIA and NYS Insurance Regulator bamboozled dumbasses to put equity into MBIA as it was becoming clear it was insolvent. At the time the story they used was that the equity money would help "assure" maintenance of the AAA rating.
As we all know, the corrupt ratings system later collapsed and the dumbass equity investors were screwed.
It was a beautiful public-private scam, but I am not sure it did, or will prevent MBIA's failure.