MBIA Inc. Announces Senior Management Change
August 10 2017 - 8:00AM
Business Wire
Jay Brown to Step Down as CEO effective September 15; Bill
Fallon Elected CEO
Leadership Change Fulfills Succession Plan Designed by Brown
and Independent Directors; Implemented Over Past Two Years
MBIA Inc. (NYSE:MBI) (the Company) today reported that its Board
of Directors has elected William C. Fallon to the position of Chief
Executive Officer of MBIA Inc., effective September 15, 2017,
bringing to conclusion MBIA Inc.’s long term succession plan, which
has been implemented over the past two years. MBIA CEO Jay Brown
has stepped down as CEO effective September 15, 2017. He plans to
conclude his service on the MBIA Inc. Board of Directors as of the
2018 Annual Shareholder meeting in May of 2018.
MBIA Chairman of the Board Charles Rinehart said, “One of the
key roles of any board and their management team is to have an
effective long term succession plan. Over the past several years,
Jay has worked with our independent board members to identify and
transition a management team to prepare us for when he moves on to
his next challenge. Bill has partnered with Jay for the last decade
in getting the company through the enormous challenges MBIA faced
created by the financial crisis and is extremely well prepared to
take on the additional leadership role for MBIA Inc. The company
owes Jay a big thank-you for coming back in 2008 and developing a
strategy to get us through the difficult circumstances we faced at
that time.”
MBIA’s immediately prior Chairman Daniel Kearney added, “Jay’s
return to the Company in 2008 proved to be absolutely critical to
MBIA’s successful navigation through the financial crisis. Through
his vision, leadership and deep understanding of the Company, MBIA
was able to design and execute a transformation strategy,
overcoming numerous legal and financial challenges, and its
operating companies were able to satisfy all of their insurance
payment obligations, consensually commute billions of dollars of
insurance contracts, and recover billions of dollars of claims
payments from financial institutions that defrauded them. We were
extremely fortunate to have Jay at the helm during this turbulent
period.”
Incoming CEO Bill Fallon said, “I am both humbled and excited to
take MBIA forward into its next stage. Jay has been a mentor and an
inspiration for me. I look forward to his continued guidance and
counsel as both MBIA and Jay pursue their future endeavors.”
MBIA CEO Jay Brown stated, “Bill has demonstrated that he has
the leadership and management skills to take MBIA through the next
chapter in its history. Notwithstanding recent developments, the
Company is well positioned, under Bill’s leadership, to create
significant shareholder value in the years ahead. It has been a
great honor to serve MBIA in a wide variety of roles over the past
31 years and I look forward to following the company’s success in
the years ahead.”
Forward-Looking Statements
This release includes statements that are not historical or
current facts and are “forward-looking statements” made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The words “believe,” “anticipate,” “project,”
“plan,” “expect,” “estimate,” “intend,” “will,” “will likely
result,” “looking forward” or “will continue,” and similar
expressions identify forward-looking statements. These statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical earnings and
those presently anticipated or projected, including, among other
factors, the possibility that MBIA Inc. or National will experience
increased credit losses or impairments on public finance
obligations issued by state, local and territorial governments and
finance authorities that are experiencing unprecedented fiscal
stress; the possibility that loss reserve estimates are not
adequate to cover potential claims; MBIA Inc.’s or National’s
ability to fully implement their strategic plan; and changes in
general economic and competitive conditions. These and other
factors that could affect financial performance or could cause
actual results to differ materially from estimates contained in or
underlying MBIA Inc.’s or National’s forward-looking statements are
discussed under the “Risk Factors” section in MBIA Inc.’s most
recent Annual Report on Form 10-K, which may be updated or amended
in MBIA Inc.’s subsequent filings with the Securities and Exchange
Commission. MBIA Inc. and National caution readers not to place
undue reliance on any such forward-looking statements, which speak
only to their respective dates. National and MBIA Inc. undertake no
obligation to publicly correct or update any forward-looking
statement if it later becomes aware that such result is not likely
to be achieved.
MBIA Inc., headquartered in Purchase, New York is a holding
company whose subsidiaries provide financial guarantee insurance
for the public and structured finance markets. Please visit MBIA's
website at www.mbia.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170810005262/en/
MBIA Inc.Greg Diamond, 914-765-3190Investor and Media
Relationsgreg.diamond@mbia.com
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