Business in the Burbs

MBIA says it has money to cover payments

September

MBIA Inc., the bond insurer in Armonk trying to recover from losses it took due to its exposure to subprime loans, said this morning it has enough cash and government securities to cover the cost of termination payments under investment contracts if it is downgraded.

The company said it has $18.1 billion in liabilities from its asset/liability management business. and about $11.2 billion of that is from guaranteed investment contracts.

MBIA stock has lost 79 percent of its value the past year.

This entry was posted on Monday, September 22nd, 2008 at 7:56 am by Allan Drury.
You can follow any responses to this entry through the RSS 2.0 feed.
Print | Email

It is a condition of your use of the comment features associated with the blogs that you do not: Use the site to post or transmit any unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane or indecent information of any kind, including without limitation any transmissions constituting or encouraging conduct that would constitute a criminal offense, give rise to civil liability or otherwise violate any local, state, national or international law. You alone are responsible for the material you post or send. Refer to the Terms of Service.