MBIA investors, ratings agencies shrug off $2.4 billion loss


MBIA (NYSE: MBI) reported a larger than expected loss of $2.4 billion, reflecting an unrealized loss of $3.6 billion on its insured credit derivatives. And the stock went up.

Why? Portfolio.com summed it up this way: "Optimistic comments eclipse dreadful numbers in the bond insurer's release."

Well, isn't that just jolly. The problem is that MBIA has been making optimistic comments all along, trashing short seller William Ackman for bashing the company, while many of Ackman's predictions have turned out to be brilliantly prescient.

Back in February of 2005, MBIA said that it was "very optimistic." The stock has since declined from over $50 to under $10 as the company has reported big losses, come under the scrutiny of rating agencies, etc.

MBIA may very well be on the road to a remarkable turnaround -- I doubt it, but who knows? In the meantime, investors would do well, as always, to believe the numbers rather than the optimistic projections.
Symbol Lookup
IndexesChangePrice
DJIA-125.1812,765.28
NASDAQ-24.632,902.60
S&P 500-11.701,340.25

Last updated: February 10, 2012: 02:35 PM

Hot Stocks

General Electric

18.825-0.305(-1.59)

Alcoa

10.26-0.38(-3.57)

Apple Inc

494.62+1.45(+0.29)

Google Inc 'A'

605.60-5.86(-0.96)

Bank of America

8.065-0.115(-1.41)

Wal-Mart Stores

61.50-0.46(-0.74)

Exxon Mobil Corp

83.50-1.38(-1.63)

Ford

12.415-0.275(-2.17)

Citigroup

32.88-0.78(-2.32)

IBM

191.57-1.56(-0.81)

Yahoo

16.185+0.185(+1.16)

Starbucks

48.60-0.60(-1.22)

Microsoft

30.51-0.26(-0.84)

Home Depot

45.05-0.22(-0.49)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1328902517893 ms.