MBIA Public Bond Unit Splits Off To Improve Rating

Law360, New York (February 18, 2009, 12:00 AM EST) -- Credit crunch-battered bond insurer MBIA Inc. has announced that it has split off its public bond guarantee unit from the rest of the company — including units that insure mortgage-backed securities — which has suffered ratings downgrades.

The Armonk, N.Y.-based company said Wednesday that it has transferred the stock of its public debt insurance entity, MBIA Insurance Corp. of Illinois, to a newly established holding company, and renamed the unit the National Public Finance Guarantee Corp.

The new company, a subsidiary of MBIA, will also be...
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