On June 12, 2010, famed mutual fund manager Berkowitz became the second largest shareholder of MBIA stock, owning 11.1% of the total outstanding shares. This is significant, not only because Berkowitz was named the domestic fund manager of the decade by Morningstar, but also because Berkowitz chose to invest in MBIA rather than a combination of MBIA and its top competitor, Ambac. This may signal that he believes MBIA is more stable and a brighter future ahead of it.
MBI posted a first quarter profit of $696.7 million, versus a loss of $2.4 billion in the same period in 2008. It was helped by an accounting gain of $1.6 billion, as the fair value of its obligations declined.
The explicit AAA guarantee of MBIA's insurance is no more. S&P has downgraded the insurance unit of MBIA to AA. All of the securities insured by Ambac assumed to be AAA will now be revalued to AA unless the underlying credit is a AAA.
Moody's has announced a review of the company's Aaa rating on the prospects of slowing new business and increases in mortgage-related losses.
MBI reported a lost of over $13.00 a share from derivative based writedowns and slowdowns in insurance premiums.
MBIA stock fell to its lowest level since 1987 after the firm announced that it had insured $8.1 billion in CDOs (collateralized debt obligations) backed by subprime mortgages.
MBI recorded a loss in the third quarter due to writedowns on the value of the company's credit derivatives portfolio and foreign exchange.