Bill Ackman strikes again against monolines – read his latest letter

Here is a copy of Bill Ackman’s latest letter on the monoline mess, dated January 30, 2008,  to the New York State Insurance Department.  AMBAC exposed to $11.61 BILLION losses; MBIA loss exposure $11.65 BILLION.  A “must read.”  →     ackman131ltr.pdf


6 responses to “Bill Ackman strikes again against monolines – read his latest letter

  1. I’m glad you establihed this site, looks like RGE is unaccessable

  2. Greetings JasonB.

    Hang in there. The action on this blog is slow, but it will pick up. The blog author is pretty energetic with her postings.

    Regarding Bill Ackman: The monolines must now feel like Mr Ackman is the “devil incarnate”. I wouldn’t be surprised if they have a dart board in their office with Bill Ackman’s picture on it 🙂
    He’s been out for blood with these guys. Given that Pershing Square is short both Ambac and MBIA, I would think his fund has already extracted max profits from this trade. Stock prices for MBIA and Ambac can’t go much lower. So Mr Ackman appears to be acting out of a certain amount of personal outrage about the behavior of these companies
    (or else he’s getting paid by Berkshire Hathaway 🙂 ).


  3. On January 18th 2008 Bill Ackman wrote a letter to Moody’s and the S&P regarding the monolines. Here is point #8 of Bill Ackman’s Letter to Rating Agencies Regarding Bond Insurers:

    I encourage you to ask yourself the following question while looking at your image in the mirror:

    Does a company deserve your highest Triple A rating whose stock price has declined 90%, has cut its dividend, is scrambling to raise capital, completed a partial financing at 14% interest (now trading at a 20% yield one week later), has incurred losses massively in excess of its promised zero-loss expectations wiping out more than half of book value, with Berkshire Hathaway as a new competitor, having lost access to its only liquidity facility, and having concealed material information from the marketplace?

    Can this possibly make sense?

  4. Hello…hello?.. LondonBanker? Giraf? PeteCA? Anyone? Where’d you all go? Here? I’ll keep looking. Please post here if somewhere else is the new spot. If here then a suggestion to Acheson: A single daily comment thread

  5. alexcanuck

    we’re around.
    I usually check this blog daily. I don’t always leave a comment, but I will respond if someone brings something up.

    You’re right. It would be easier for everyone to communicate if there was just one blog session each day.


  6. I know this is 2 years ago, but does anyone still have a copy of the accompanying open source excel model that Ackman did?

    Would much appreciate if someone can upload it for download. Have been searching for that for a long time.


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