MBIA CEO Accused Of Insider Trading

MBIA’s (NYSE:MBI) chief executive Joseph W. Brown Junior has been accused of insider trading. The allegation comes in the midst of a trial concerning fraud when MBIA was split into two separate organisation. The specific allegation relates to purchases of the company’s stock Mr. Brown made in the months leading up to the restructuring. MBIA committed to a plan to separate its municipal bond insurance business from its mortgage backed securities sector which were in trouble due to the financial crisis. The announcement of that plan was made in February 2009.
MBIA has been surrounded by litigation...