Detroit’s record bankruptcy may cost bond insurers more than $1 billion in claims. Yet the filing is also boosting the appeal of guaranteed municipal debt as the companies pledge to cover Motor City investors in full.
MBIA Inc., the largest bond insurer, will split its municipal bond insurance business from the mortgage-related debt guarantees that led to the loss of its top credit ratings. The shares surged 30 percent.
Morgan Stanley can’t ask a court in Singapore to block shareholders living in that country from suing over their losses on $154.7 million in synthetic collateralized debt obligations, a judge in New York ruled.
William Bryan Jennings, the Morgan Stanley U.S. bond-underwriting chief accused of stabbing a New York cab driver of Middle Eastern descent over a fare, pleaded not guilty to assault and hate-crime charges.
Bank of America Corp. may face billions of dollars more in liability for faulty mortgages if a judge agrees with insurer MBIA Inc. that the lender must buy back loans even if the errors didn’t cause a borrower’s default.
MBIA Inc. defeated a lawsuit by Bank of America Corp. and Societe Generale SA that sought to reverse approval of the bond insurer’s $5 billion asset-transfer because it cut money available to cover their policy claims.
MBIA Inc. is no longer considered by credit-derivatives traders to be in distress after Bank of America Corp. agreed to a legal settlement that injects $1.6 billion of cash into the bond insurer and resolves five years of litigation stemming from the U.S. housing crisis.