Is MBIA Tied To The New Fannie Investigations?

The plot thickened with regard to battered Fannie Mae today, with the announcement of new accounting problems. "Fannie's regulator said it was examining how the enterprise accounted for trusts," which were set up to guarantee the mortgage backed securities.

But who is guaranteeing what? This from MBIAs' web site, "For over a decade, MBIA has been insuring mortgage-backed transactions across the full spectrum of mortgage products." And from the Yahoo company profile, "MBIA Inc. is engaged in providing financial guarantee insurance, investment management services, and municipal and other services to public finance, and structured finance clients on a global basis."

Now considering there are government subpoenas of the firm combined with this stock action, one could conclude the two companies are linked. Now all we need is for AIG to be involved somehow and this will make Enron look like Krispy Kreme.