Note 6 - VIEs Level 3 (Tables)

12 Months Ended

Dec. 31, 2012

VIEs [Abstract]

Financial Guaranty Insurance Contracts VIEs [Table Text Block]

The following tables provide a summary of our maximum exposure to losses and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated and unconsolidated financial guaranty insurance contracts and credit derivative VIEs:

	Consolidated				Unconsolidated
	December 31,				December 31,
(In thousands)	2012		2011		2012		2011
Balance Sheet:
Trading securities	$	78,006	$	94,521	$	—	$	—
Derivative assets	—		—		3,201		4,090
Premiums receivable	—		—		2,859		3,584
Other assets	99,337		105,885		—		—
Unearned premiums	—		—		2,513		3,793
Reserve for losses and LAE	—		—		14,376		7,909
Derivative liabilities	70,467		19,501		175,781		79,473
VIE debt—at fair value	98,983		218,790		—		—
Accounts payable and accrued expenses	365		530		—		—
Maximum exposure (1)	120,939		579,988		5,096,718		6,126,337

_______________

(1) The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which include an adjustment for our non-performance risk, as applicable. For those VIEs that have recourse to our general credit, the maximum exposure is based on the net par amount of our insured obligation. For any VIEs that do not have recourse to our general credit, the maximum exposure is generally based on the recorded net assets of the VIE, as of the reporting date.

	Consolidated									Unconsolidated
	Year Ended December 31,									Year Ended December 31,
(In thousands)	2012			2011			2010			2012			2011			2010
Statement of Operations:
Premiums earned	$	—		$	—		$	—		$	2,087		$	2,648		$	2,836
Net investment income	3,362			8,696			10,927			—			—			—
Net (loss) gain on investments	(1,205		)	14,746			—			—			—			—
Change in fair value of derivative        instruments—gain (loss)	1,189			(10,696		)	(14,523		)	(168,255		)	511,202			(478,285		)
Net (loss) gain on other financial        instruments	(90,071		)	155,507			(143,555		)	—			—			—
Provision for losses—increase (decrease)	—			—			—			5,930			(6,015		)	6,536
Other operating expenses	2,332			3,090			3,487			—			—			—
Net Cash (Outflow) Inflow	(134,509		)	823			830			(68,990		)	7,620			(32,077		)

Net Interest Margin Securities VIES [Table Text Block]

The following tables provide a summary of our maximum exposure to losses and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated NIMS VIEs:

	December 31,
(In thousands)	2012		2011
Balance Sheet:
Derivative assets	$	1,585	$	1,602
VIE debt—at fair value	9,875		9,450
Maximum exposure (1)	14,061		18,515

_______________

(1) The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which include an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligation as of the reporting date.

	Year Ended December 31,
(In thousands)	2012			2011			2010
Statement of Operations:
Net investment income	$	528		$	528		$	364
Change in fair value of derivative instruments—loss	(279		)	(1,624		)	(861		)
Net (loss) gain on other financial instruments	(4,938		)	4,420			(39,583		)
Net Cash Outflow	(4,250		)	(119,137		)	(187,089		)

Committed Preferred Custodial Trust Securities VIEs [Table Text Block]

The following tables provide a summary as of and for the periods indicated of our maximum exposure to losses and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows related to our consolidated and unconsolidated CPS VIEs:

	Consolidated
(In thousands)	December 31, 2011
Balance Sheet:
Short-term investments	$	149,981
Other assets	19
Maximum exposure (1)	150,000

_____________

(1) The maximum exposure is based on our carrying amounts of the investments.

	Consolidated			Unconsolidated
	Year Ended December 31,			Year Ended December 31,
(In thousands)	2010			2010
Statement of Operations:
Change in fair value of derivative        instruments—gain (loss)	$	141		$	(6,281	)
Net loss on other financial        instruments	(25,699		)	—
Other operating expenses	400			—
Net Cash Outflow	(83,391		)	(878		)