MBIA, the bond insurer, suffered one of the worst losses today after it revealed a plan to raise $1 billion and cut quarterly dividend to 13 cents from 34 cents. MBIA has suffered heavy losses related to asset based lending and sub-prime lending. The company hopes that this recapitalization move will save its AAA rating. In total $652 billion of bonds could suffer in value if MBIA loses its AAA rating. |
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