<SEC-DOCUMENT>0001157523-12-006152.txt : 20121120
<SEC-HEADER>0001157523-12-006152.hdr.sgml : 20121120
<ACCEPTANCE-DATETIME>20121120095335
ACCESSION NUMBER:		0001157523-12-006152
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20121119
ITEM INFORMATION:		Other Events
FILED AS OF DATE:		20121120
DATE AS OF CHANGE:		20121120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MBIA INC
		CENTRAL INDEX KEY:			0000814585
		STANDARD INDUSTRIAL CLASSIFICATION:	SURETY INSURANCE [6351]
		IRS NUMBER:				061185706
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09583
		FILM NUMBER:		121216672

	BUSINESS ADDRESS:	
		STREET 1:		113 KING ST
		CITY:			ARMONK
		STATE:			NY
		ZIP:			10504
		BUSINESS PHONE:		914-273-4545

	MAIL ADDRESS:	
		STREET 1:		113 KING ST
		CITY:			ARMONK
		STATE:			NY
		ZIP:			10504
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a50485011.htm
<DESCRIPTION>MBIA INC. 8-K
<TEXT>
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      <br>
      <font style="font-size: 18pt; font-family: Times New Roman"><b>SECURITIES
      AND EXCHANGE COMMISSION</b></font><br><font style="font-size: 14pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-size: 18pt; font-family: Times New Roman"><b>FORM
      8-K</b></font><br><br><font style="font-size: 14pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman">Pursuant
      to Section 13 or 15(d) of</font><br><font style="font-size: 10pt; font-family: Times New Roman">
      the Securities Exchange Act of 1934</font><br><br><br><font style="font-size: 10pt; font-family: Times New Roman">Date
      of Report (Date of earliest event reported): November 20, 2012&#160;(November
      19, 2012)</font><br><br><font style="font-size: 18pt"><b>MBIA INC.</b></font><br><font style="font-size: 10pt; font-family: Times New Roman">(Exact
      name of registrant as specified in its charter)</font><br><br>
    </p>
    <div style="text-align:center">
    <table style="font-size: 10pt; margin-left:auto;margin-right:auto; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman" cellspacing="0">
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          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Connecticut</b>
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        </td>
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          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1-9583</b>
          </p>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; width: 33%; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>06-1185706</b>
          </p>
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        <td style="padding-left: 0.0px; text-align: center; width: 33%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction of
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          <p style="margin-top: 0px; margin-bottom: 0px">
            incorporation)
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        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 34%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 33%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification No.)
          </p>
        </td>
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    <p>
      <br>

    </p>
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    <table style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>113 King Street,<br>Armonk, New York</b>
          </p>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; width: 50%; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>10504</b>
          </p>
        </td>
      </tr>
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        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <font style="font-size: 10pt; font-family: Times New Roman">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">Registrant&#8217;s
      telephone number, including area code:</font><br><b>914-273-4545</b><br><br><br><b>Not
      Applicable</b><br><font style="font-size: 10pt; font-family: Times New Roman">(Former
      name or former address, if changed since last report)</font><br><br><br>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font><br>
    </p>
    <p>

    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Item 8.01.&#160;&#160;&#160;&#160;&#160;OTHER EVENTS.</b>
    </p>
    <p>

    </p>
    <p>
      On November 19, 2012, Moody&#8217;s Investors Services, Inc. (&#8220;Moody&#8217;s&#8221;)
      downgraded the senior debt rating of MBIA Inc. (&#8220;MBIA&#8221;) to Caa1,
      developing outlook, from B2, negative outlook, and the insurance
      financial strength rating of MBIA Insurance Corporation (&#8220;MBIA Corp.&#8221;)
      and its subsidiary MBIA Mexico, S.A. de C.V. to Caa2, developing
      outlook, from B3, review for a possible downgrade.&#160;&#160;The ratings of
      National Public Finance Guarantee Corporation and MBIA UK Insurance
      Limited were not affected by the rating actions and remain unchanged at
      Baa2, negative outlook, and B3, under review for downgrade, respectively.
    </p>
    <p>

    </p>
    <p>
      Moody&#8217;s indicated that:
    </p>
    <p>

    </p>
    <p>
      &#8220;[T]he downgrade of MBIA Inc.&#8217;s senior debt to Caa1 reflects:
    </p>
    <p>

    </p>
    <p>
      1) The ongoing stress at MBIA Corp. and the risk of claims payment
      deferral or other regulatory action including potentially a
      rehabilitation or an insolvency proceeding, in the event that MBIA and
      Bank of America cannot reach a global settlement that would leave MBIA
      solvent;
    </p>
    <p>

    </p>
    <p>
      2) The credit linkage between MBIA Inc. and its MBIA Corp. subsidiary
      given the cross default provision in MBIA Inc.&#8217;s senior debt indentures.
      A rehabilitation proceeding at MBIA Corp. is an event of default;
    </p>
    <p>

    </p>
    <p>
      3) The limited liquidity at MBIA Inc. relative to potential debt
      repayments due under a possible cross default with MBIA Corp. At
      September 30, 2012, MBIA Inc. had $432 million of liquid assets and $897
      of senior notes outstanding;
    </p>
    <p>

    </p>
    <p>
      4) Bank of America&#8217;s recent tender offer on one class of MBIA Inc.&#8217;s
      senior bonds which, if successful, could prevent MBIA from completing a
      consent solicitation that would have removed the cross default provision
      between MBIA Corp. and MBIA Inc.&#8221;
    </p>
    <p>

    </p>
    <p>
      Moody&#8217;s also indicated that:
    </p>
    <p>

    </p>
    <p>
      &#8220;[T]he downgrade of MBIA Corp. to Caa2, from B3, reflected a number of
      factors:
    </p>
    <p>

    </p>
    <p>
      1) The insurer&#8217;s weak liquidity position. At September 30, 2012, MBIA
      Corp. had approximately $386 million of liquid assets &#8211; a modest amount
      relative to the insurer&#8217;s contingent liabilities;
    </p>
    <p>

    </p>
    <p>
      2) Ongoing deterioration of MBIA&#8217;s commercial real estate portfolio that
      could lead to meaningful claims in the near future and threaten MBIA&#8217;s
      already strained liquidity;
    </p>
    <p>

    </p>
    <p>
      3) The likelihood that any potential global settlement with Bank of
      America over outstanding claims would be consummated at terms
      characteristic of a distressed exchange;
    </p>
    <p>

    </p>
    <p>
      4) The likelihood of a claims payment deferral or other regulatory
      intervention at MBIA Corp. absent a settlement with Bank of America
      should significant claims materialize.&#8221;
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
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    </div>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">

    </p>
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        </td>
        <td style="width: 45%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            MBIA INC.
          </p>
        </td>
      </tr>
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        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
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        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">
          &#160;
        </td>
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        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
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        <td style="padding-left: 0.0px; text-align: left; width: 5%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 45%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 3%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>By</b>:
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 47%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>/s/ Ram D. Wertheim</u>
          </p>
        </td>
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        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 47%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Ram D. Wertheim
          </p>
        </td>
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        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 47%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Legal Officer
          </p>
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        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

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        <td style="width: 47%">
          &#160;
        </td>
      </tr>
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          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 45%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            November 20, 2012
          </p>
        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">

        </td>
      </tr>
    </table>
    </div>
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