MBIA Posts Q3 Loss, Builds Loss Reserves

"Beleaguered bond insurer MBIA Inc. (MBI: 8.46 -19.12%) said Wednesday before market open that it lost $806.5 million, or $3.48 per share, during the third quarter, driven primarily by increases to loss reserves on the company’s second lien residential mortgage exposures. The quarterly loss compares to a $36.6 million net loss, or $.30/share, in the year ago period; the insurer had posted a profit of $1.7 billion one quarter earlier on an accounting quirk, as HW reported in August."