MBIA Plans to Split, Cuts Dividend, Questions 2007 Results
MBIA Plans to Split, Cuts Dividend, Questions 2007 Results
From Bloomberg: MBIA Plans to Split Asset-Backed, Municipal Units
MBIA Inc., … will separate its municipal unit from the asset-backed securities it guarantees within five years after posting record losses on subprime debt.
The Armonk, New York-based company will stop writing asset- backed securities guarantees for six months, new Chief Executive Officer Jay Brown said in a letter to shareholders today. Brown also said he has “questions” about the company’s 2007 preliminary results released last month and hasn’t yet signed off the statements.
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“Everything we are working towards right now is centered on regaining stability,” Brown said in the letter. “We can expect a bumpy ride over the coming months and possibly longer.”
F1rom MBIA: MBIA Inc. Eliminates Quarterly Dividend
MBIA Inc. today announced that its Board of Directors voted to eliminate the quarterly dividend.
Split within 5 years? Why even mention it now?
Add: MBIA Issues Letter to Owners (hat tip risk capital)
