Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: stan_hughes who wrote (356693)	2/6/2008 7:00:24 PM
From: MythMan	Read Replies (2) \| Respond to of 436258

Sounds like a Clint Eastwood spaghetti western movie. -g-

To: stan_hughes who wrote (356693)	2/6/2008 7:05:49 PM
From: Giordano Bruno	Respond to of 436258

Floritexafornia Lol uk.youtube.com MBIA Reveals Q4 Financial Result Adjustments; To Raise $750 Mln. Through New Stock Offering - Update [MBI] 2/6/2008 7:05:39 PM Wednesday, financial guarantee insurance company, MBIA, Inc. (MBI), said its fourth quarter and full year net loss would be reduced by $6.5 million following the review and finalization of fourth quarter and full year results announced earlier. Pre-tax net loss on financial instruments at fair value or mark-to-market would also decrease by $110 million and increase the special addition to the unallocated loss reserve for prime, second-lien mortgage exposure by $100 to $200 million. MBIA also revealed it would raise $750 million through new stock offering, which Warburg Pincus will backstop in exchange for preferred stock. The Armonk, New York based company added that the adjustment would decrease the previously announced after-tax operating income for the year by $65 million to $127.9 million while after-tax operating loss for the quarter would increase by $65 million to $472.8 million. Operating income is exclusive of the effects of non-cash net realized gains and losses, net gains and losses on financial instruments at fair value, with the exception of credit impairment, and foreign exchange. Upon the release of fourth quarter earnings on January 31, 2008, MBIA had determined a special addition of $100 million to the unallocated loss reserve linked to its estimate of probable losses due to the adverse residential mortgage market related to prime, second-lien mortgage exposure, not specifically identified to individual policies. MBIA carried out a review of information for the month of December 2007 received from servicers who provide monthly reports on structured finance transactions, whereupon it was determined to further increase the unallocated loss reserve for potential losses on the second-lien portfolio. Therefore, another $100 million was added to its unallocated loss reserve for prime, second-lien loss exposure, indicating a total special addition of $200 million. MBIA will also reduce fourth quarter pre-tax mark-to-market net loss and foreign exchange by $110 million resulting from a $400 million Money Market Committed Preferred Custodial Trust securities or CPCT Securities facility created for the primary purpose of issuing CPCT Securities and investing the proceeds in high quality commercial paper or short-term U.S. Government obligations. A financial instrument, the soft capital facility is required to be fair valued and consequently, the company indicated a $110 million mark-to-market gain on this facility during fiscal 2007. MBIA reported a huge loss in the fourth quarter on fair value and foreign exchange losses with a net loss of $2.30 billion or $18.61 per share, compared to a net income of $180.99 million or $1.32 per share in the prior-year quarter. Results for the fourth quarter included net realized gains of $0.13 per share, net losses on financial instruments at fair value and foreign exchange of $3.14 billion, pre-tax, or $16.49 per share after tax, and estimated credit impairment on insured derivatives of $1.05 per share. In a separate development, MBIA revealed it would issue approximately 50.3 million shares of its common stock to raise $750 million in an underwritten registered offering. J.P. Morgan Securities Inc. and Lehman Brothers Inc. will assist the company in this effort as the joint book-running managers for the offering. Providing a backstop to the offering, private-equity firm Warburg Pincus will purchase up to $750 million of convertible participating preferred stock, subject to limited conditions. The convertible participating preferred stock will be converted into the company's common stock, upon a shareholder vote. Warburg Pincus has the option to purchase up to $300 million of the convertible participating preferred stock under the backstop. Warburg Pincus' has already made a $500 million investment in MBIA common stock end January 2008 as part of its commitment to invest up to $1 billion in MBIA. Linked to the investment, Warburg has received 16.1 million warrants. MBIA said it would divert most of the net proceeds of the offering and the backstop commitment to the surplus of its subsidiary, MBIA Insurance Corporation, to support its business plan. MBIA closed Wednesday's regular trade at $14.28, down $0.62 or 4.16%, on a volume of 7.30 million shares on the NYSE. In after-hours trading, the stock gained $1.12 or 7.84%, trading at $15.40. In the last 52-week period, the stock traded in the range of $6.74 - $73.48, with a three-month average volume of 14.6 million shares.