by Calculated Risk on 1/31/2008 01:16:00 AM

From Bloomberg: MBIA Posts Biggest Loss; Considers New Capital Plans

MBIA Inc., the world's largest bond insurer, posted its biggest-ever quarterly loss and said it is considering new ways to raise capital ...

The fourth-quarter net loss was $2.3 billion ... raising concern the ... company will lose its Aaa rating at Moody's ... Without the Aaa stamp, MBIA would be unable to lend a top rating to new securities, crippling its business and throwing ratings on $652 billion of debt into doubt. ... Bond insurers guarantee $2.4 trillion of debt combined and are sitting on losses of as much as $41 billion, according to JPMorgan Chase & Co. analysts. Their downgrades could force banks to write down $70 billion, Oppenheimer & Co. analyst Meredith Whitney said yesterday in a report.

The ratings watch continues.