MBIA Announces Restructuring of Fixed-Income Manager Cutwater

February 8, 2010

MBIA Inc. has announced that it has restructured its fixed-income asset management subsidiary to function as a separate operating company, now known as Cutwater Asset Management.

MBIA Inc. (“MBIA”) announced that it has restructured its fixed-income asset management subsidiary, Cutwater Asset Management (“Cutwater”), into its own operating company which will continue MBIA’s focus on fixed-income asset management. Although it will be managed as a separate entity, Cutwater will continue to be housed under MBIA’s corporate umbrella. As a part of the restructuring, Cutwater will now report its financial results as a stand-alone segment of MBIA.

MBIA’s fixed-income asset management will continue to be run through Cutwater. To facilitate a strong start to Cutwater’s new operating structure, MBIA has infused a number of additional employees in support areas, marketing, and accounting infrastructure. The influx of employees will be overseen by Clifford D. Corso who will be continuing as the President and Chief Investment Officer of Cutwater.

The move to restructure Cutwater as a separate operating company follows MBIA’s plan of separating its primary groups into independent legal entities. By creating separate entities, MBIA can assume the structure of a holding company, something it has attempted to do over the past two years.

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