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CNBC ON DIGG

MBIA Shares Plunge in Wake of Earnings

Published: Tuesday, 10 Nov 2009 | 12:55 PM ET

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By: Reuters

Bond insurer MBIA reported a third-quarter loss on Monday on rising writedowns of credit derivatives it insured, sending its shares down roughly 20 percent Tuesday.

MBIA

MBIA [MBI Loading... () ] on Monday reported a third-quarter net loss of $727.8 million, or $3.50 a share, down almost 10 percent compared with a net loss of $806.5 million, or $3.42 a share, in the same period a year earlier.

The Armonk, New York-based company had just over 208 million shares outstanding at the end of September, compared with 235.7 million in the same period a year earlier.

"The third quarter's loss is a reminder that the impact of this recession continues to be felt throughout the economy," said Chief Financial Officer Chuck Chaplin.

A $810.2 million pre-tax unrealized loss on insured credit derivatives made up most of MBIA's loss, while smaller losses from investments and mortgage securitizations also weighed on the company.