Bond Insurer Pays $75 Million To Settle Fraud Charges

Law360, New York (January 29, 2007, 12:00 AM EST) -- Leading bond insurer MBIA Inc. has agreed to a $75 million settlement with state and federal regulators over allegations it fraudulently concealed a massive loss—the first quarterly loss in its corporate history.

The financial guarantor has also agreed to restate its earnings and adopt sweeping business reforms to prevent a repeat of the fraud, which went unnoticed for more than five years.

Under its settlement with the U.S. Securities and Exchange Commission, MBIA, one of the nation’s largest municipal bond insurers, will pay a $50 million...
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