Points up front: Taking on the Patriarch

Points up front: Taking on the Patriarch

Comment by: Mike Peterson. Posted 10 years ago [2013-07-08 10:44:37]

Patriarch Partners has responded to this article, pointing out that MBIA did not lose money on the “class B” notes which were at the centre of the legal dispute. "MBIA insured Zohar I and Zohar II for a customary fee,” the firm said in a written statement. “MBIA also received a contingent interest in the Class B Note in Zohar I – the subject of the lawsuit. MBIA did not lose money on the Class B Note, because MBIA obtained its interest at no cost." We are incorrect to say in the article above that MBIA invested in Zohar III. To clarify, the monoline provided a guarantee on Zohar I and Zohar II but not on the third deal in the series.