Just came back from an amazing week of travel around Canada. Vancouver, The Rockies, Victoria and Nigara Falls...my beautiful Butchart Gardens, I miss you already.
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Browsing through some of the value investor's website and came across this lawsuit between MBIA and Thrid Avenue Funds. The activist investor who protects its shareholder.
Long story short: Last year MBIA Parent ("P") needed to raise capital, and Thrid Ave bought the bonds for one of the MBIA subsidiary (call it "S") - essentially the only viable going concern in the whole MBIA. Now P created a new entity and transferred the business of S to P, which left the value of S to be essentially zero. So Third Ave is suing MBIA "P" and saying that it is illegal and unfair, thus seeking damages.
Haiz...so sad...To me, it sounds like a case of - when u need money, people lend you, now you have money (ie earning power), u dun want to pay back. If only i can rule like those TV judges and just scold MBIA's management on public television.
The Compliant, MBIA CEO's statement, Third Avenue's Statement
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