by Calculated Risk on 2/25/2008 06:17:00 PM

From Bloomberg: MBIA Plans to Split Asset-Backed, Municipal Units

MBIA Inc., ... will separate its municipal unit from the asset-backed securities it guarantees within five years after posting record losses on subprime debt.

The Armonk, New York-based company will stop writing asset- backed securities guarantees for six months, new Chief Executive Officer Jay Brown said in a letter to shareholders today. Brown also said he has ``questions'' about the company's 2007 preliminary results released last month and hasn't yet signed off the statements.
...
``Everything we are working towards right now is centered on regaining stability,'' Brown said in the letter. ``We can expect a bumpy ride over the coming months and possibly longer.''

From MBIA: MBIA Inc. Eliminates Quarterly Dividend

MBIA Inc. today announced that its Board of Directors voted to eliminate the quarterly dividend.

Split within 5 years? Why even mention it now?

Add: MBIA Issues Letter to Owners (hat tip risk capital)