General Motors Stock up as Recalls sent Profits down
General Motors Stock up as Recalls sent Profits down
U.S. Stocks Fluctuated, Standard & Poor’s Index Approached Record
U.S. Stocks Fluctuated, Standard & Poor’s Index Approached Reco...
El-Erian Described Bill Gross as One of World’s Best Investors
El-Erian Described Bill Gross as One of World’s Best Investors
Higher Mortgage Rates are Making Properties Unaffordable
Higher Mortgage Rates are Making Properties Unaffordable
Job Listings

MBIA Sued by Bank of America

 

MBIA Inc has been sued by Bank of America Corp in a state court in New York for interfering with a tender offer to purchase bonds from MBIA, according to Reuters. MBIA tried to change the terms of some of its bonds so it could remove risk that it could be in default if a unit was placed into liquidation or rehabilitation by regulators in New York.

 

A counteroffer was made by Bank of America to purchase the bonds. The company said that it thought the changes would increase the risk of the insurance unit at MBIA being placed into liquidation or rehabilitation. This would then jeopardize the claims of the policyholders.



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


 

Bank of American announced Thursday that it bought $136 million of senior note in that tender and then issued a default notice when MBIA tried to change the terms. In the lawsuit, Bank of America claims that the consent solicitation was the most recent “premeditated and subversive actions” of MBIA since 2008 to create benefits for stockholders and executives at the expense of Bank of America.

 

Bank of America claims in the lawsuit, which was filed on Thursday, that MBIA interfered illegally with the tender offer and asked for consent solicitation and amendment to be declared invalid.

 

On the other side of things, MBIA alleges that Bank of America owes the company billions of dollars for bad mortgages that it wants Bank of America to repurchase. The bank claims that MBIA owes it billions for credit default swap transactions.

Did you like this? Share it:
MBIA Sued by Bank of America by

Tagged: , , ,

Posted by on December 14, 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.
  • Robert

    Greetings,

    What are the chances a big investor such as Bill Ackman could be shorting MBIA stock based on his history with its management and his recent tease comments in October stating its a “good for ‘America’ short and the sooner this company goes out of business, the better off the country will be”. I haven’t come across a single investment article even remotely examining this possible premise, especially in light of the recent MBIA stock performance since October’s comments and recent strategic moves by BAC designed to draw out the legal process in its ongoing legal battle you have so eloquently covered in your previous articles. We all know investors such as Ackman, Einhorn etc have access to company executives that you and I are not given and perhaps someone like Ackman is privy to BAC’s strategy to take MBIA to the limit and run out the clock and with such knowledge, can participate in and accelarate the downside based on a public acrimonious relationship with MBIA’s CEO Jay Brown. What are your thoughts?

    Regards,
    Robert Palish