tag:blogger.com,1999:blog-6798074091942701235.post5818421132690151362..comments2024-03-27T11:08:31.557-04:00Comments on Can Turtles Fly?: Will Warburg Pincus end up in the private equity hall of fame? They need to pull off a coup with MBIASivaram Vhttp://www.blogger.com/profile/06361276466660862882noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6798074091942701235.post-81374296322376842882009-02-21T21:14:00.001-05:002009-02-21T21:14:00.001-05:00Actually, MBIA has completely separated out the mu...Actually, MBIA has completely separated out the muni business in a new subsidiary that provides "cut-through" reinsurance for the muni bondholders in exchange for all the unearned premiums. That means the cash has been shifted to the new unit and only the muni holders have a potential claim on that cash. The new unit is indirectly subordinate to holdco but completely separated from the existing insurance co. That means that if the structured business sinks the muni holders, as well as holdco debt and shareholders, will still have that cash left. Barclay's who have a lot of MBIA exposure they have not written down, wrote a rather pissed off note on the subject.<br />s<br />(information on the structure of the new unit is in their website)Anonymousnoreply@blogger.com