Dan Ackman, prominent short-seller of troubled bond insurer MBIA, doesn’t believe their disclosures and doesn’t think the rating agencies are doing their job. So he did his own analysis.
In his report, Ackman, of Pershing Square Capital, will contend that both bond insurers have said their mark-to-market losses are less than $1.5 billion, but according to his analysis, the losses for each firm will be around $12 billion.
I love that this is possible.