MBIA Inc. (NYSE: MBI) (the Company) today announced that the New York
State Supreme Court has upheld the New York State Insurance Department’s
(now the Department of Financial Services) decision to approve MBIA’s
Transformation in February of 2009, which came after the Department’s
thorough and careful analysis. Initially, a group of 18 banks challenged
the approval in an Article 78 proceeding, although by the commencement
of hearings before the Court, just two banks remained. In its 59-page,
thorough and well-reasoned decision, the Court rejected each of the
banks’ arguments that the Department’s approval of Transformation was
either arbitrary and capricious, or contrary to law.
“After almost four years of court filings, discovery and hearings, we
are pleased that the New York State Supreme Court has affirmed what was
obvious all along – that the New York State Insurance Department’s
approval of our Transformation was proper in all respects,” said Jay
Brown, MBIA CEO. “With the Court’s ruling now in hand, we look forward
to resolving the remainder of our litigation so that we can support the
financing needs of towns and cities across America by re-establishing
National Public Finance Guarantee Corporation, our U.S. muni-only
insurer, as a leader in the U.S. public finance insurance market.”
Forward-Looking Statements
The information contained in this press release should be read in
conjunction with our filings made with the Securities and Exchange
Commission. This release includes statements that are not historical or
current facts and are “forward-looking statements” made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,”
“intend,” “will likely result,” “looking forward” or “will continue,”
and similar expressions identify forward-looking statements. These
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from historical earnings and
those presently anticipated or projected, including, among other risks
and uncertainties, whether the Company will realize, or will be delayed
in realizing, insurance loss recoveries expected in disputes with
sellers/servicers of RMBS transactions at the levels recorded in its
financial statements, the possibility that the Company will experience
severe losses or liquidity needs due to increased deterioration in its
insurance portfolios and in particular, due to the performance of CDOs
including multi-sector, CMBS and CRE CDOs and RMBS, the failure to
obtain regulatory approval to implement our risk reduction and liquidity
strategies, the possibility that loss reserve estimates are not adequate
to cover potential claims, the risk that MBIA Insurance Corporation will
be placed in a rehabilitation or liquidation proceeding by the NYSDFS,
the Company’s ability to access capital and the Company’s exposure to
significant fluctuations in liquidity and asset values within the global
credit markets, in particular in the ALM business, the Company’s ability
to fully implement its strategic plan, including its ability to achieve
high stable ratings for National or any other insurance subsidiaries,
and the Company’s ability to commute certain of its insured exposures,
including as a result of limited available liquidity, the Company’s
ability to favorably resolve litigation claims against the Company, and
changes in general economic and competitive conditions. These and other
factors that could affect financial performance or could cause actual
results to differ materially from estimates contained in or underlying
the Company’s forward-looking statements are discussed under the “Risk
Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K
and Quarterly Report on Form 10-Q, which may be updated or amended in
the Company’s subsequent filings with the Securities and Exchange
Commission. The Company cautions readers not to place undue reliance on
any such forward-looking statements, which speak only to their
respective dates. The Company undertakes no obligation to publicly
correct or update any forward-looking statement if it later becomes
aware that such result is not likely to be achieved.
MBIA Inc., headquartered in Armonk, New York is a holding company whose
subsidiaries provide financial guarantee insurance, as well as related
reinsurance, advisory and portfolio services, for the public and
structured finance markets, and asset management advisory services. The
Company services its clients around the globe with offices in New York,
Denver, San Francisco, Paris, London, Madrid and Mexico City. Please
visit MBIA's website at www.mbia.com.
