Tuesday, 11 August 2009

Monoline Death Watch

Felix Salmon discusses some recent JPM research on MBIA:
in a note issued this morning they said that MBIA’s tangible book value is actually negative, to the tune of about -$40 per share.
OK, the full article has some caveats. But the mere fact that a reputable investment bank (if that is not an oxymoron) can suggest that MBIA is insolvent should raise some warning signs about the extended historical fiction that is insurance accounting.

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