Author: 123jump.com Staff
123jump.com
Last Update: 11:55 PM EDT May 12 2008

MBIA rose after it reported first quarter revenue decline of 4% to $711.4 million and loss of $2.4 billion or $13.03 per share. The company asserted that the mark-to-market accounting creates a higher loss than the potential economic loss that the company anticipates. In addition, even if the losses are incurred they have to be paid over 30 to 40 years time. The bond insurer offered its own calculation of book value per share, that shows sharply higher net worth of the company.