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December 13, 2011 | Reuters
Morgan Stanley agreed to give up insurance claims against MBIA Inc. in exchange for a $1.1-billion payment from the ailing insurer, ending a two-year legal fight over guarantees on mortgage bonds. The deal, announced Tuesday, is the latest move by Morgan Stanley Chief Executive James Gorman to clear away vestiges of the financial crisis and put the Wall Street bank on a more stable path. The settlement will cause Morgan Stanley to take a $1.2-billion charge in the fourth quarter after accounting for a tax benefit, but it will also remove risky assets from the company's balance sheet that have led to big swings in its quarterly earnings the past four years.
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BUSINESS
May 7, 2013 | By E. Scott Reckard and Andrew Tangel, Los Angeles Times
NEW YORK - As Bank of America Corp. pulls itself free from a swamp of mortgage liabilities, new troubles keep threatening to suck it back under. BofA agreed to settle a big insurer's claims over faulty mortgage bonds for $1.7 billion Monday. But it found itself threatened with new legal action for failing to abide by a landmark settlement aimed at saving homeowners from foreclosure. The Charlotte, N.C., bank said it would settle a lawsuit dating from the financial crisis with mortgage insurance specialist MBIA Inc. The insurer had been pressing BofA for more than $5 billion in damages.
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BUSINESS
May 13, 2008
Bond insurer MBIA Inc. posted a quarterly loss of $2.4 billion as it took charges on billions of dollars of exposure to bonds linked to sub-prime mortgages. But MBIA's beaten-down shares rose more than 4% as adjusted results beat expectations and the company said new business volumes appeared to be rising from the first quarter. The charges announced Monday wiped out 40% of MBIA's net worth, but MBIA said most of the changes it recorded in the value of its exposure would not translate to actual payouts on insurance.
BUSINESS
December 13, 2011 | Reuters
Morgan Stanley agreed to give up insurance claims against MBIA Inc. in exchange for a $1.1-billion payment from the ailing insurer, ending a two-year legal fight over guarantees on mortgage bonds. The deal, announced Tuesday, is the latest move by Morgan Stanley Chief Executive James Gorman to clear away vestiges of the financial crisis and put the Wall Street bank on a more stable path. The settlement will cause Morgan Stanley to take a $1.2-billion charge in the fourth quarter after accounting for a tax benefit, but it will also remove risky assets from the company's balance sheet that have led to big swings in its quarterly earnings the past four years.
BUSINESS
February 8, 2008 | From Times Wire Services
MBIA Inc., the world's biggest bond insurer, raised $1 billion, more than initially planned, in a public offering of common stock designed to help preserve its AAA rating. The offering came about after Fitch Ratings placed the company's insurance ranking under review for a downgrade amid rising losses on the type of sub-prime mortgage debt that MBIA has guaranteed. The offering brings to $2.5 billion the amount MBIA has raised since November. The extra funds may not be enough to avert a downgrade because rating companies are increasing the amount of capital they demand that bond insurers set aside, Bank of America analysts said in a note to clients Thursday.
BUSINESS
January 11, 2008 | From Times Wire Services
A planned $1-billion debt sale by MBIA Inc. may be delayed until next week, investors familiar with the offering said Thursday, as investors demand greater concessions to help the world's largest bond insurer shore up its capital and defend its rating. The news came a day after MBIA slashed its dividend and said it would sell $1 billion of so-called surplus notes and buy reinsurance. The moves are part of an effort to preserve capital and the triple-A ratings the bond insurer needs to operate normally.
BUSINESS
February 26, 2008 | From Times Wire Services
MBIA Inc., the world's largest bond insurer, held onto its top credit ratings from Standard & Poor's on Monday, quieting fears that downgrades by S&P would worsen the long-running credit crisis. S&P said it grew more confident about MBIA's stability after the insurer this year raised $2.6 billion by issuing new shares and debt. But the outlook for MBIA's ratings over the next six months to two years remains negative because of the size of its potential losses compared with the insurer's capital cushion, S&P said.
BUSINESS
February 20, 2008 | From Times Wire Services
Bond insurance giant MBIA Inc. said Tuesday that it brought back its former chief executive and that it might separate its municipal bond business to protect that unit from losses the company was facing on mortgage-backed bonds. But Wall Street didn't seem impressed: MBIA shares slid 54 cents, or 4.4%, to $11.70. MBIA said Joseph "Jay" Brown returned as chairman and chief executive of MBIA after the ouster of former CEO Gary Dunton on Saturday. Brown, 59, was CEO until 2004, when Dunton took over.
BUSINESS
January 12, 2008 | From Times Wire Services
MBIA Inc., the largest bond insurer, was sued by shareholders over claims that the company hid its potential losses from securities backed by mortgages. The suit alleges that Chief Executive Gary C. Dunton and Chief Financial Officer Charles Edward Chaplin violated federal securities laws by issuing false financial statements, regulatory filings and statements during investor calls. The company reported fourth-quarter write-downs and expenses this month of about $4 billion related to mortgage securities.
BUSINESS
January 10, 2008 | From Times Wire Services
MBIA Inc., the giant bond insurer hobbled by the sub-prime mortgage market's collapse, said Wednesday that it would cut its dividend 62% and raise $1 billion in a sale of notes to boost capital and preserve its AAA credit rating. The announcement drove the firm's shares to their lowest level in 16 years in early trading. But the stock recouped most of the day's loss later in the session, after an official at Warren Buffett's Berkshire Hathaway Inc. said the company might throw a lifeline to struggling bond insurers.
BUSINESS
November 11, 2009 | Bloomberg News
U.S. stocks fell following six straight gains for the Standard & Poor's 500 Index as earnings disappointed investors at MBIA Inc. and Fluor Corp. and a rebound in the dollar weighed on commodity prices. MBIA, the world's largest bond insurer, slumped 20 percent after posting a $727.8 million loss on insured credit derivatives. Fluor sank 7.3 percent after cutting its full-year earnings forecast. Exxon Mobil Corp. and Newmont Mining Corp. declined as oil and metal prices slid. The dollar rose from an almost 15-month low against the currencies of major trading partners, diminishing the appeal of commodities.
BUSINESS
July 11, 2009 | E. Scott Reckard
Claiming that it lost $1 billion on fraudulent mortgage-backed securities, a giant insurer filed a lawsuit Friday seeking to recover damages from Countrywide Financial Corp. and Bank of America Corp., which acquired Countrywide last year. The Los Angeles County Superior Court lawsuit was filed on behalf of MBIA Insurance Corp. of New York.
BUSINESS
May 14, 2009 | TIMES WIRE REPORTS
Bank of America Corp., JPMorgan Chase & Co., UBS and 15 other financial companies sued MBIA Inc., saying the biggest bond insurer's split of its guarantee business illegally cut their odds of getting paid on policies. MBIA stripped $5 billion of assets out of its MBIA Insurance Corp. division to fund a new unit amid "an ongoing financial crisis that has made it increasingly likely that MBIA Insurance will have to pay out billions" of dollars, according to the complaint filed in New York State Supreme Court in Manhattan.
BUSINESS
October 2, 2008 | From Times Wire Services
Bond insurer MBIA Insurance has sued Bank of America Corp.'s Countrywide Financial subsidiary, alleging that it committed fraud in obtaining guarantees on billions of dollars of trust obligations of mortgage-backed securities that have already cost the MBIA Inc. unit more than $459 million. In a New York state court complaint, the Armonk, N.Y.-based insurer said Countrywide knowingly gave mortgages "to borrowers who could not afford to repay the loans, or who committed fraud in loan applications, or who otherwise did not satisfy the basic risk criteria for prudent and responsible lending."
BUSINESS
May 13, 2008
Bond insurer MBIA Inc. posted a quarterly loss of $2.4 billion as it took charges on billions of dollars of exposure to bonds linked to sub-prime mortgages. But MBIA's beaten-down shares rose more than 4% as adjusted results beat expectations and the company said new business volumes appeared to be rising from the first quarter. The charges announced Monday wiped out 40% of MBIA's net worth, but MBIA said most of the changes it recorded in the value of its exposure would not translate to actual payouts on insurance.
BUSINESS
February 26, 2008 | From Times Wire Services
MBIA Inc., the world's largest bond insurer, held onto its top credit ratings from Standard & Poor's on Monday, quieting fears that downgrades by S&P would worsen the long-running credit crisis. S&P said it grew more confident about MBIA's stability after the insurer this year raised $2.6 billion by issuing new shares and debt. But the outlook for MBIA's ratings over the next six months to two years remains negative because of the size of its potential losses compared with the insurer's capital cushion, S&P said.
BUSINESS
November 11, 2009 | Bloomberg News
U.S. stocks fell following six straight gains for the Standard & Poor's 500 Index as earnings disappointed investors at MBIA Inc. and Fluor Corp. and a rebound in the dollar weighed on commodity prices. MBIA, the world's largest bond insurer, slumped 20 percent after posting a $727.8 million loss on insured credit derivatives. Fluor sank 7.3 percent after cutting its full-year earnings forecast. Exxon Mobil Corp. and Newmont Mining Corp. declined as oil and metal prices slid. The dollar rose from an almost 15-month low against the currencies of major trading partners, diminishing the appeal of commodities.
BUSINESS
October 2, 2008 | From Times Wire Services
Bond insurer MBIA Insurance has sued Bank of America Corp.'s Countrywide Financial subsidiary, alleging that it committed fraud in obtaining guarantees on billions of dollars of trust obligations of mortgage-backed securities that have already cost the MBIA Inc. unit more than $459 million. In a New York state court complaint, the Armonk, N.Y.-based insurer said Countrywide knowingly gave mortgages "to borrowers who could not afford to repay the loans, or who committed fraud in loan applications, or who otherwise did not satisfy the basic risk criteria for prudent and responsible lending."
BUSINESS
February 26, 2008 | From the Associated Press
Stocks rallied Monday on hopes that troubled bond insurers will emerge from the sub-prime mortgage debacle on solid footing. The Dow Jones industrials rallied nearly 190 points. Share prices shot up after Standard & Poor's affirmed its credit ratings for MBIA, the world's largest bond insurer. Other developments helping the market included a report from the National Assn. of Realtors showing that sales of existing homes fell less than forecast in January.
BUSINESS
February 20, 2008 | From Times Wire Services
Bond insurance giant MBIA Inc. said Tuesday that it brought back its former chief executive and that it might separate its municipal bond business to protect that unit from losses the company was facing on mortgage-backed bonds. But Wall Street didn't seem impressed: MBIA shares slid 54 cents, or 4.4%, to $11.70. MBIA said Joseph "Jay" Brown returned as chairman and chief executive of MBIA after the ouster of former CEO Gary Dunton on Saturday. Brown, 59, was CEO until 2004, when Dunton took over.
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