AFGI Releases Statement About MBIA Withdrawal

The Association of Financial Guaranty Insurers has released a statement regarding insurer MBIA's withdrawal from the association. "AFGI members are surprised at the withdrawal of MBIA from AFGI," Sean McCarthy, chair of the association of AFGI and president and COO of Financial Security Assurance Holdings Ltd., said. "AFGI is a trade association that serves as a consistent informational source, represents the industry in standardizing financial reporting and disclosure and speaks for the industry on a number of issues." McCarthy added that the AFGI has not taken a position on member firms' organizational structures, lines of business or execution formats, like CDS or policy forms. Aside from this, all of the financial guaranty products offered by industry members, including insured CDS, are allowed under applicable insurance law and regulation. "AFGI remains committed to supporting the industry and its members who offer credit enhanced products in the municipal and asset-backed markets," McCarthy said.