Thursday, January 31, 2008
MBIA, the largest bond insurer, reported a $2.3 billion fourth quarter net loss and a $3.5 billion write-down of its credits derivatives portfolio. Warburg Pincus purchased $500 million worth of stock to provide much-needed capital. MBIA's triple-A credit rating, which is necessary to insure municipal bonds, may be at risk; Moody's is said to be reviewing it. WSJ, Derivatives Write-Downs Hit MBIA.