MBIA served with notice

SEC also concerned about Channel Re, a reinsurer which MBIA helped to set up

MBIA served with notice

MBIA Insurance Corporation, the world's largest bond insurer and one of the few insurers with an AAA rating from all three main rating agencies (Moody's, Standard & Poor's and Fitch), has been served with a Wells Notice by the US Securities and Exchange Commission (SEC) because SEC staff believe that MBIA has violated federal securities laws when it tried to retroactively limit the risk to itself from its insurance of $265mn of bonds issued by a Pennsylvania based network of hospitals, the Allegheny Health, Education and Research Foundation (AHERF), which went bankrupt in 1998.