Capital markets round up: MBIA – The good, the bad and the ugly

March 05, 2009

MBIA has launched a new public finance-only financial guarantee insurance company, which will conduct business solely in the US. This might look very much like the good bank/bad bank solution that was mooted for the monolines when the financial crisis first broke but according to the firm it is not.

"This is not a good bank/bad bank split, although that is how I expect many observers will report on the change," claims MBIA chairman Jay Brown. "This is a split along structured finance and US public finance lines that was essential as a first step to transform the company, stabilize the business and help unfreeze the US public finance capital markets."

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Louise Bowman

Editor

Louise Bowman is Editor. She joined Euromoney in March 2006 and appointed deputy editor in 2014 and editor in 2020. Louise has worked for Euromoney in London and New York and also spent several years in Hong Kong writing for Asiamoney.