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MBIA 2Q profit soars on hefty gains
Friday August 8, 6:32 am ET
MBIA 2nd-quarter profit soars on gains related to credit
derivatives
NEW YORK (AP) -- Bond insurer MBIA Inc. says unrealized gains on
credit derivatives pushed its second-quarter profit higher from the
year-earlier period.
The Armonk, N.Y., company earned $1.7 billion, or $7.14 per share,
in the quarter ended in June, up from $211.8 million, or $1.61 per
share, a year ago.
The latest quarter includes $3.3 billion in pretax unrealized gains
on insured credit derivatives due to wider spreads on credit
default swaps -- a type of insurance on complex financial contracts
-- on MBIA Insurance Corp.
MBIA says the deterioration in the general housing and mortgage
markets was consistent with its earlier projections, and it did not
materially change its projection of ultimate losses on its
mortgage-related exposures.