February 8, 2008 |
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.
January 11, 2008 |
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.
February 26, 2008 |
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.
February 20, 2008 |
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.
January 12, 2008 |
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.
January 10, 2008 |
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.