Popular Searches
Useful Links
Finance, Accounting and Control Case Study
Case Title:MBIA, the Largest Municipal Bond Insurer in the US: Credibility at Stake?
Publication Year : 2005
Authors: Mercy Mathew & Srinath Manda
Industry: Banking, Insurance and Financial Services
Region:USA
Case Code: FAC0025
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
Municipal Bond Insurance Association (MBIA) is the largest municipal bond insurer in the US and a subterranean powerhouse in the US financial market. The key to MBIA's success is the rare and coveted rating of 'Triple-A' given to its insurance arm by the credit rating agencies. In 2002, Bill Ackman, a short seller, raised questions about MBIA's business model and in particular the credibility of its 'Triple-A' rating, but those allegations were dismissed as baseless. Later in March 2005, MBIA announced that it had received subpoenas from the Securities Exchange Commission and the New York Attorney General Eliot Spitzer, seeking documents relating to the company's accounting policies. The company even restated its profits for the previous six years.
Pedagogical Objectives:
- To discuss MBIA's business model and the credibility of its 'Triple-A' rating
Keywords : Municipal Bond Insurance Association, Municipal bonds, Municipal bond insurer, Credit ratings, Financial instruments, Special-purpose vehicles (SPV), Accounting scandal, Reinsurance, Restatement of profits, Corporate governance, Business model,Finance Case Study, 'Triple-A' rating, Bill Ackman, Rating agencies, Accounting policies
Recently Bought Case Studies
- Global Banking Industry: The New Horizons
Price: $25
Hardcover edition
ISBN 978-81-314-2414-8 - Fast Food Retailing Industry - Vol. I
Price: $25
Hardcover edition
ISBN 978-81-314-2456-8 - Decision Making
Price: $50
Hardcover edition
ISBN 978-81-314-1571-9 - View all Casebooks »
Case Studies On
- Course Case Mapping For Financial Management - I
Price: $Course Case Mapping For Financial Management - I
Hardcover edition - Course Case Mapping For Quantitative Methods
Price: $Course Case Mapping For Quantitative Methods
Hardcover edition - Course Case Mapping For Marketing Management - I
Price: $Course Case Mapping For Marketing Management - I
Hardcover edition - View All Course Casemaps»
Course Case Mapping For
- An Interview with Personnel of Vaatsalya Group
Price: $Vaatsalya Hospitals (B): The Operational Model - An interview with Dr. Ashwin Naik & Dr. Veerendra Hiremath
Price: $Vaatsalya Hospitals (A): The Business Model - An Interview with Dr.Rajiv Malhotra & (Prof)Dr.M.P.Sharma
Price: $Managing a World-Class Hospital: The Rockland Story - View all Video Interviews»
Video Interviews
- Training and Development
Executive Brief with Anjali Mukherjee
Highly Recommended for Human Resource Management / Training and Development Course - You Can't Play by Rules, Always
Executive Brief with R.D. Prasad, Product Manager.
Highly Recommended for Organizational Behavior Course - New Recruit MBAs Attitudes
Executive Brief with Lopamudra Ray, Keya Gupta and Deepika Lingala.
Highly Recommended for Organizational Behavior Course - View all Executive Briefs»
Executive Brief
- David Conklin
David Conklin, is a professor at the Richard Ivey School of Business
Speaks on Government and Business - Lord Meghnad Desai
Lord Meghnad Desai, is an Indian-born British economist and Labor politician
Speaks on Government and Business - Vijay Govindarajan
Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
Speaks on Reverse Innovation - View All Executive Interviews»