The ResCap adds $800 million less the $72 million to close-out the BofA credit facility, net $728 million to MBIA. . $1.7 billion squirreled away from earlier BofA settlement for total of $2.428 billion. MBIA's current market cap equal to $2.26 billion. Put another way, at $11.75 per share you could reacquire all the shares and still have $200 million cash! Anyone remember Saul Steinberg? He once famously stated, "If the market doesn't like my numbers I'll simply buy them back." Food for thought.
very correct and accurate post. Market is currently pricing MBIA as a going concern and is expecting no growth in the future. Run off value is much higher than current market share price and if they start writing business again in 2014 this stock should double from here. We are not out of the woods yet but glad to see the share price above the 200 day moving average.
MBIA Insurance (MBI) will record a small gain after selling its claims against the bankruptcy estate of ResCap for an amount modestly higher than already recorded on MBIA's balance sheet.
With $72M of the proceeds from the sale, MBIA has paid down all outstanding borrowing under its $500M credit line with Blue Ridge Investments.