Skip to main content

Bond Insurer To Sue Hedge Fund For Speaking Truth?

  • Author:
  • Updated:

The following copy has been revised so as not to offend the delicate palates of aselectfew. These individuals were brave enough to speak up against the injustice I apparently inflicted on the English language with the previous version of this post (it contained two run-on sentences and the phrase "in my medical opinion," which made me sound "unintelligent"). Please thank them for acting as a sort of neighborhood watch group, and keeping me in line.
MBIA said today that it may sue Pershing Square Capital founder Bill Ackman. For the last six years, the hedge fund manager has "waged a campaign" against the bond insurer, and this year stated publicly that the company may be insolvent. Apparently MBIA's decision to "assess all [its] options, including litigation," is in response to an anonymous e-mail the company received, asking if it planned to follow-up on New York State Insurance Superintendent Eric Dinallo's comments last month that "rumor mongering" about the solvency of an unnamed bond insurer (see if you can guess which one) by an unnamed short-seller (see if you can guess who) "crossed a line." Rest assured Carney and--fingers crossed-- Andrew Ross Sorkin will have more to say on this later.
MBIA May Sue Short-Seller Ackman's Pershing Square [Bloomberg]

I've also retracted my outing of #2 by firm, but not by occupation.