MBIA, Nasdaq, ICE & Greenhill

MBIA, the troubled Armonk, N.Y.-based bond insurer, posted a $2.3 billion loss and a write-down of $3.5 billion.
JAN 31, 2008
By  Bloomberg
MBIA Inc. posted a serious loss in the fourth quarter, while The Nasdaq Stock Market Inc., Intercontinental Exchange Inc., and Greenhill & Co. posted gains. MBIA, the troubled Armonk, N.Y.-based bond insurer posted a $2.3 billion loss, or $18.61 per share, after earning $181 million, or $1.32 per share, in the year-ago period. It recorded a write-down of $3.5 billion, reducing earnings by $18.04 per share, which was mostly due to the reduced value of collateralized debt obligations in its insured portfolio. The company also took a $713.5 million pre-tax loss on its exposure to rising delinquencies and defaults among home equity products. That amount included $100 million that was placed in reserve to cover potential future losses. Nasdaq’s profit rose 25%, resulting from an increase in trading volume due to market volatility and greater fees. The New York-based electronic exchange said fourth-quarter earnings increased to $79 million, or 52 cents per share, up from $63 million, or 43 cents a share during the year-ago period. The earnings excluded a $18.2 million increase related to foreign currency option contracts and charges of $1.1 million stemming from retiring debt. Nasdaq, which is in the process of acquiring Stockholm, Sweden-based OMX AB, said its exchange revenue increased 16% to $211.6 million. Intercontinental Exchange reported profit that spiked 32% as the acquisition of the New York Board of Trade boosted trading volume. The Atlanta-based exchange said earnings rose to $64.7 million, or 90 cents per share, up from $49 million, or 81 cents per share, in the year-ago period. Profit was reduced by $3 million due to stock compensation paid to employees. Daily trading volume on ICE's European and North American futures exchanges grew 25% and 26%, respectively, with 192 million contracts traded. Aflac earnings increased 15%, due to strong sales in Japan and the weakening value of the Japanese yen. The Columbus, Ga.-based insurer said earnings rose to $382 million, or 78 cents per share, down from $332 million, or 67 cents per share, in the year-ago period. Sales of new policies in Japan rose 2.7% in the quarter, while sales of new policies in the U.S. rose 5.9%. Greenhill’s profit increased 43% on larger fees from advising on mergers. The New York-based boutique investment bank increased to $28.5 million, or $10.2 per share, up from $20 million or 68 cents per share, during the year-ago period. The company’s advising fees grew by 47%, while merchant banking fees fell 27%.

Latest News

IRA rollovers from DC plans to hit $1.15T by 2030, LIMRA says
IRA rollovers from DC plans to hit $1.15T by 2030, LIMRA says

Research highlights the dominant role of workplace retirement plans and breaks down the major factors dictating workers' IRA rollover decisions.

GReminders unveils autonomous AI assistant for financial advisors
GReminders unveils autonomous AI assistant for financial advisors

The wealth tech firm is rolling out its "Do Anything" assistant as leaders and strategists tout the next evolution of artificial intelligence.

Court strikes down SEC CAT funding plan, puts broker-dealer costs under fire
Court strikes down SEC CAT funding plan, puts broker-dealer costs under fire

Appeals court overturns SEC’s CAT funding plan, broker-dealers face new uncertainty.

FINRA fines second broker-dealer over misleading communication with clients about crypto
FINRA fines second broker-dealer over misleading communication with clients about crypto

TradeStation Securities' communications violated industry rules, including falling short on describing the risks involved in investing in volatile crypto assets.

Advisor moves: Osaic welcomes Valic veteran in Arizona, Janney hails $3.3B recruiting haul
Advisor moves: Osaic welcomes Valic veteran in Arizona, Janney hails $3.3B recruiting haul

Meanwhile, a father-son pair of advisors and ex-marines from ex-Edward Jones gives Kingsview its newest location in Arkansas.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.