Yesterday's hope (which sent MBI shares higher) a settlement was close between Bank of America...

Yesterday's hope (which sent MBI shares higher) a settlement was close between Bank of America (BAC) and MBIA looks dead as BofA completes its purchase of the some of the insurer's debt and promptly issues a default notice. MBI -2.7% early. (PR)

Comments (5)
  • gwynfryn
    , contributor
    Comments (6458) | Send Message
    Phew; this reads like a murder mystery! I wish they'd settle, as throwing money at lawyers seldom does anyone any good in such cases... well, except for the lawyers.
    14 Dec 2012, 09:58 AM Reply Like
  • JeffreyLangBoyd
    , contributor
    Comments (663) | Send Message
    Has been fun watching it. I've always had a sneaking suspicion that MBIA can't afford to settle, hence all the desperate gambles they have had to take.


    MBIA purchasing those bonds at a substantial premium to market reduces the proceeds available to other bond holders and increases the possibility of bankruptcy as liquidity at the parent is substantially reduced. These are two indisputable and important facts but you will never read about them in the press. I've never understood how the press allows MBIA to get away with things like this.


    BAC's motivation to purchase the bonds was obvious, out in the open and covered in the press unlike MBIA's actions.
    14 Dec 2012, 10:22 AM Reply Like
  • gwynfryn
    , contributor
    Comments (6458) | Send Message
    That's interesting Jeff; I have had this feeling that we're not getting anything like the full story. Hey, maybe Hollywood will give us the "true" story, someday!
    14 Dec 2012, 11:41 AM Reply Like
  • MexCom
    , contributor
    Comments (3069) | Send Message
    MBI came to a gun fight with only a knife.
    15 Dec 2012, 01:29 PM Reply Like
  • Getzeman
    , contributor
    Comments (49) | Send Message
    BofA should just buy them.
    14 Dec 2012, 10:54 PM Reply Like
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