Regulators eyeing MBIA

MBIA Inc. said that the SEC and the New York Insurance Department have started informal inquiries into a deal that the company made with private-equity firm Warburg Pincus LLC. The New York-based bond insurer also said that it plans to keep the New York insurance regulator informed about dividend payments, its approach to its structured finance business and "significant" transactions that are not in the ordinary course of business, the company said in a filing with the SEC. The company also announced today that it will slash its dividend and plans to issue $1 billion of debt to preserve its AAA trading. MBIA also said it would report $737 million in losses and loss adjustment expenses for the fourth quarter of 2007 relating to securities made up of high quality residential home equity loans. The company's shares were down $0.98, or 7%, to $13.00 in afternoon trading.