MBIA Declines to Disclose Information Requested by SEC
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MBIA Inc., the bond insurer locked in a three-year legal battle with Bank of America Corp., is refusing to disclose information requested by the U.S. Securities and Exchange Commission including on reserves for GMAC Mortgage LLC and Residential Capital LLC bankruptcies.
In letters released today, the commission asked for more details about how the bond insurer ended $32.4 billion of gross insured commercial mortgage-backed securities, how it accounts for commutations of financial guarantee insurance contracts versus derivatives, and the amount it calculated for loss reserves and recoveries related to Ally Financial Inc.’s GMAC Mortgage and Residential Capital’s bankruptcies.