Banking, finance, and taxes
Davis Selected Advisers Takes Piece In MBIA (MBI)
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Davis Selected has bought 5.1% of MBIA (MBI). Just a few days ago, the fund put money into Merrill Lynch (MER).
MBIA shares are rising on the news, up 11% to $22.29.
The investment is almost certainly more of a long shot than the one in Merrill. MBIA still could face a cut of its "AAA" rating. According to Reuters, Fitch Ratings said it may cut its ratings on eight top-rated collateralized debt obligation bonds that were insured by MBIA Insurance Corp.
If MBIA does lose its current rating, the stock could easily move below its 52-week low of $18.84.
Douglas A. McIntyre
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