MBIA are such squirrels. They know how to work the system and survive, I will give them that.
CEO quote from the press release which I am making the Quote of the Day.
"I continue to believe that investors in MBIA should understand that this number is nothing more than a barometer of credit market sentiment and market liquidity or illiquidity and does not accurately reflect the actual losses that would be expected at MBIA," Brown said in the letter.
This number I am sure refers to earnings number coming out next week. Okay so the number is going to bad, sounds like really bad, but everyone should ignore it. It is meaningless because of market sentiment. That may actually be legitimate if Ambac had not seriosly upped the actual losses number they now expect. Then also this.
Bond insurer MBIA Inc. says it has the liquidity it needs in its insurance and asset management segments and won't spend the $1.1 billion it raised until it boosts capital in the insurance unit and decides how it will run the business long-term.
How ridiculous. Yeah you don't need the capital. YOU HAVEN'T BEEN DOWNGRADED and you aren't writing any substanital new business. You don't need the capital until you have to post additional collateral if you actually were writing substanial business or you were downgraded and you are not being downgraded because you would wreck the system. Yet somehow this is all supposed to be a sign of strength.
Talk about twisted.
I have made alot of money on this as a short but it has to be the most frustrating short I have ever been in.