MBIA posts deep second-quarter loss
Insured derivatives turned out to be the culprit
MBIA Inc. (MBIA) recorded a net loss of $178 million in the second quarter as the firm lost $182 million on the value of insured derivatives, Reuters reported Wednesday.
The company reported a net loss of $178 million, or 92 cents per share, in the second quarter, compared with net income of $581 million, or $2.98 per share, a year earlier.
The company had realized a $1.2 billion pre-tax gain on insured credit derivatives in the year-ago quarter.