MBIA (MBI) Shares Rise as NYSDFS May Be Forcing RMBS Settlement - Analyst
Tweet Send to a Friend
Get Alerts MBI Hot Sheet
Price: $14.57 -1.55%
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade MBI Now!
Shares of MBIA Inc. (NYSE: MBI) are trading stronger today amid positive sentiment among investors that it might be reaching a major settlement deal soon.
According to analyst firm MKM Partners, a recent move by New York State Department of Financial Services (NYSDFS) in not telling MBIA whether it was cleared to make a scheduled note payment on July 16th might be an indicator that the regulator wants MBIA to reach a settlement with Bank of America (NYSE: BAC) and SocGen. MKM hints that MBIA might already be in talks with both.
Logic behind the move is that NYSDFS sees a municipal-only financial guaranty company as in the best interest of the public. The more aggressive involvement recently along with an Appellate Court decision on private-label RMBS investors might spur BofA to move forward.
MKM noted that both BofA and SocGen would have an easier time if they were prodded.
The firm maintains a Buy rating and $18 price target on MBIA.
Shares are up 4 percent following a 1.9 percent gain Wednesday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
According to analyst firm MKM Partners, a recent move by New York State Department of Financial Services (NYSDFS) in not telling MBIA whether it was cleared to make a scheduled note payment on July 16th might be an indicator that the regulator wants MBIA to reach a settlement with Bank of America (NYSE: BAC) and SocGen. MKM hints that MBIA might already be in talks with both.
Logic behind the move is that NYSDFS sees a municipal-only financial guaranty company as in the best interest of the public. The more aggressive involvement recently along with an Appellate Court decision on private-label RMBS investors might spur BofA to move forward.
MKM noted that both BofA and SocGen would have an easier time if they were prodded.
The firm maintains a Buy rating and $18 price target on MBIA.
Shares are up 4 percent following a 1.9 percent gain Wednesday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Bulls and Bears Do Battle in Aeropostale (ARO); Turnaround Intact?
- Williams-Sonoma (WSM) Delivers 'Clean' Q1 Beat - Analyst
- Jefferies Bumps Zumiez (ZUMZ) Numbers Up, But Remains on Sidelines
Create E-mail Alert Related Categories
Analyst Comments, Trader TalkRelated Entities
Bank of America
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
