MBIA Debt-Guarantee Split Sparks Hedge Fund Lawsuit
Thursday, March 12, 2009 : PermalinkBloomberg – MBIA’s split of its bond- insurance business was challenged by hedge funds alleging the move hurts owners of about $240 billion of debt while benefiting stock investors, executives and some policyholders.
The reorganization, in which MBIA stripped $5.4 billion of assets and its U.S. municipal business from a unit that now mainly insures only structured-finance bonds, “represents the height of insidious greed,” the Aurelius Capital Management and Fir Tree Partners funds said in a lawsuit filed today.
Tags: assets, aurelius capital, bloomberg, bond insurance, bonds, capital-management, finance, fir tree partners, greed, insurance, insurance business, mbia, municipal business, partners funds, policyholders, reorganization, stock investors
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