1. Unfortunately Alzhus is not posting anymore as this poster would be the person to ask about the abv calculation provided by Syncora. They actually have been allowed to overstate book value by not including full value of pfd and par value of notes. They then subtract this in there abv computation, but the calculations by Tapley included the correct subtractions ( I think!?) and came up with an abv of well north of 10 instead of 2.5 computed by management. Tapley did add back a little over 100 million for contingency reserve but there is more than that to account for? Derivative Accounting ? What is the source or source of the difference?
2. While there is considerable discussion about Puerto Rico etc, the largest loss reserves are for the old rmbs . I think the figure is 80% of the loss adjustment expenses that total 1 billion in the consolidated financial statements. Now in the operating supplements these loss adjustment expenses are reduced by offsetting investment in the rmbs by the company. In addition there is an offset somewhere for projected recoveries from Greenpoint & Lehman.
3. My above points are really questions to you , Denny , others. I will admit to being fuzzy on exactly what is going on in the financials despite considerable amount of time spent trying to understand them.
This an invitation over the next few weeks to anyone to try to explain what their understanding of the financial picture is.
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