MBIA is one of the several Bond Insurance Companies presently in credit ranking turmoil as a result of its own sojourn in the subprime debacle. MBIA has hit upon a solution to its problems. It has reportedly rehired the Chair and CEO that ventured into subprime territory. More than that, MBIA is reportedly considering paying the CEO it is ousting, who was on duty when MBIA ran aground, $11,000,000.00 or $11 Million in cash, stocks, and "retirement benefits". Vikas Bajaj & Julie Creswell, "Bond Insurer in Turmoil Turns to Familiar Leader" p. C2, col. 1 "Business Day Section" (New York Times Nat'l Ed., Wed., Feb. 20, 2008).
At the same time, bonds are not being bought if the Bond Insurance Companies are all there is to back them. Awareness of that stark reality is growing among those who otherwise might be in the market of buyers and sellers of Bonds including local governments authorized to issue Bonds. See "Market Place" by Floyd Norris, "Auctions Yield Chaos For Bonds" p. C1, Col. 1 "Business Day Section" (New York Times Nat'l Ed., Wed., Feb. 20, 2008). See also Jeremy R. Cooke, "Florida Schools, California Convert Auction Bonds Amid Failures" (Bloomberg.com, Friday, Feb. 22, 2008).
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