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Article: Bond Insurers: Pershing Letter: Oust MBIA Management.
- Article from:
- The Bond Buyer
- Article date:
- March 22, 2007
- Author:
CopyrightCOPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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MBIA Inc., the parent company of the municipal market's largest bond insurer, has placed "substantial financial risks" upon its insurance subsidiary by entering other lines of business, says activist hedge fund Pershing Square Capital Management LP.
In a letter written March 2, the fund called for the ouster of MBIA president and chief executive Gary Dunton, and Jay Brown, the company's chairman and former chief executive. The letter also said disgorgement of management bonuses, the installation of more independent directors, and the hiring of an independent expert on credit exposure and capital adequacy were all necessary to ensure that the bond insurance ...