S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Banking, finance, and taxes

BofA Wants Its Place as Creditor Against MBIA … Tenders for MBIA Debt

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Thinkstock
MBIA Inc. (NYSE: MBI) has tanked after Bank of America Corp. (NYSE: BAC) has tendered for the 5.70% MBIA notes due in 2034. The bank is asking note holders to sell their 2004 MBIA notes to BofA rather than consent to certain proposed amendments to the 2004 Indenture being sought by MBIA in connection with MBIA’s consent solicitation.

As it turns out, affiliates of BofA are party to certain credit default swap transactions under MBIA, which provided credit support with a notional value of $6.15 billion. The bank said it has established credit valuation adjustments for a significant portion of that figure, but it also believes the risk of MBIA Insurance Corporation being placed in rehabilitation or liquidation will increase. This would jeopardize all policyholder claims, including Bank of America’s claims under these transactions.

If you want to know just how scared this makes the market, MBIA is down 17% at $6.99. That also takes the stock to a new 52-week low as the prior range was $7.10 to $13.50. Today’s news is down $0.01 to $9.38 after having been positive on the day.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

Continue Reading

Douglas A. McIntyre |

Can Barron’s Save MBIA From Ambac’s Fate? (MBI, ABK)

There was an interesting article in this weekend’s edition of Barron’s.  The financial weekly bible is noting that, despite the…
Douglas A. McIntyre |

A Profitable MBIA… The Possible Impossibility (MBI, ABK)

MBIA Inc. (NYSE: MBI) was on our schedule to report earnings tomorrow, but the troubled and former largest bond insurer…
Douglas A. McIntyre |

Can MBIA’s $36.35 Adjusted Book Value Entice? (MBI, RDN)

MBIA Inc. (NYSE: MBI) reported some mixed earnings after the close.  The only reason it even really matters is because…
Douglas A. McIntyre |

AMBAC Comes Clean & Runs The Gauntlet (ABK, MBI)

Ambac Financial Group, Inc. (NYSE: ABK) has finally come clean, but this coming clean is so brutal that it will…
Douglas A. McIntyre |

Insiders at MBIA & Ambac Buy Shares (MBI, ABK)

We have seen numerous transactions today in different FORM 4 filings where executives at both MBIA Inc. (NYSE: MBI) and…
Jon C. Ogg |

MGIC Struggles for Viability & Relevance (MTG, PMI, MBI)

MGIC Investment Corporation (NYSE: MTG) is one of the troubled mortgage insurers which we routinely worry about for both viability…
Jon C. Ogg |

When J.P. Morgan Defends Bank of America… And Addressing Multiple Rumors (JPM, BAC, C, FAS)

J.P. Morgan Chase & Co. (NYSE: JPM) is the highest credit quality of the money center banks in America.  Bank…
Paul Ausick |

Mortgage Putback Ruling Could Slam Banks (FBC, AGO, MBI, JPM, CS, BAC)

Brian Katt / Wikimedia Commons / GNU Free Documentation LicenseA federal judge in Manhattan ruled yesterday that Flagstar Bancorp Inc.…
Douglas A. McIntyre |

MBIA Tries Yelling All Clear (MBI)

MBIA Inc. (NYSE: MBI) decided to speak out against some recent speculation and some recent reporting on its overall health. …

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618