Municipal Bond Forum
MBIA litigation
Q
Last year MBIA split its bond insurance business. NATL became the municipal bond insurer and MBIA remained to insure the other assets, such as mortgages, and other real-estate related products. This split was challenged by several New York brokerage houses. I was wondering where those challenges currently stand.
A
James A. Klotz responds:
The litigation challenging the split of MBIA into two parts is still pending. We have no insight into how long this will take.
We are told court hearings are to begin in January.
It is interesting to note, however, that some highly regarded professional investors, like Bruce Berkowitz, of Fairholme Capital Management, have been minimizing his stake in the company.
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