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RISK MANAGEMENT

Should MBIA lose its AAA rating? That’s the question Gotham Partners Management, a US hedge fund, asked in a report last month that brought a quick, angry response from the US monoline insurer’s chairman, Jay Brown. Gotham said dramatically increased liquidity, investment, underwriting and correlation risks in MBIA’s business and investment portfolio in recent years were the reasons underpinning its belief that MBIA should not maintain its rating. Brown hit back, saying that Gotha