Monday, November 16, 2009
A Lack of Rigor Costs MBIA
MBIA, the financial insurance company, used to hold itself out as a paragon of hard work and number crunching... "Each transaction guaranteed by MBIA needs to pass a rigorous underwriting process proving no losses will arise under the worst probable case scenario," the company said in a typical investor presentation just three years ago.
It added that its payouts for claims over 32 years came to less than $10,000 a year for every $100 million of insurance it wrote... "We expect," the company added, "to remain at that level or better."
That expectation was wrong...
NYT: A Lack of Rigor Costs MBIA
It added that its payouts for claims over 32 years came to less than $10,000 a year for every $100 million of insurance it wrote... "We expect," the company added, "to remain at that level or better."
That expectation was wrong...
NYT: A Lack of Rigor Costs MBIA
Permalink posted by markw @ 4:35 AM 
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