MBIA Inc.

Armonk, NY: New York State and federal regulators filed a securities fraud and misuse of finite reinsurance lawsuit against MBIA Inc. The investigations into the financial guarantee insurer alleged use of sham reinsurance transactions in 1998 to mask a $170 million bond loss incurred on its guarantee of bonds issued by a bankrupt unit of Allegheny Health, Education & Research Foundation of Pittsburgh. MBIA did not admit or deny any wrongdoing as part of two separate agreements, one with the US Securities and Exchange Commission and the other with the New York State Insurance Department and the Office of the New York Attorney General. The settlement saw MBIA Inc. pay $75 million to settle charges. (Jan-29-07) [BUSINESS INSURANCE: MBIA SETTLEMENT]

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