As of December 31, 2011, MBIA Corp.’s statutory balance sheet reflected $1.6 billion in cash and invested assets including $534 million of cash, short-term investments and other highly liquid investments available to meet liquidity demands, and excluding amounts held by subsidiaries. This compares to $3.3 billion in cash and invested assets, including $1.2 billion of cash, short-term investments and other highly liquid investments as of December 31, 2010. The decrease in liquidity resources was partially driven by payments made to commute potentially volatile exposures. Some of the commutation payments made in the fourth quarter of 2011 were financed through a $1.1 billion five-year secured loan from National to MBIA Corp. The Company believes that MBIA Corp.’s liquidity resources, including expected cash inflows from its investment portfolio, will adequately provide for anticipated cash outflows.MBIA Corp. had statutory capital of $2.3 billion and claims-paying resources totaling $6.1 billion at December 31, 2011. Beginning with the fourth quarter of 2011, the Company changed its calculation of claims-paying resources to include salvage assets, including putback receivables, that it expects to be available to pay future claims. Advisory Services The Company’s Advisory Services business is primarily conducted in its Cutwater Asset Management subsidiaries. Cutwater recorded pre-tax income of $9 million in the fourth quarter of 2011 compared with a pre-tax loss of $3 million in the fourth quarter of 2010. The improvement was driven by increased advisory performance fees and lower compensation expenses. Cutwater’s average assets under management in the fourth quarter were $35.4 billion, down 8 percent from $38.5 billion in the third quarter of 2011. Third-party average assets under management in the fourth quarter totaled $23.0 billion, down 8 percent from $25.0 billion in the third quarter of 2011. Corporate Segment The Corporate segment comprises MBIA Inc.’s holding company activities and certain subsidiaries, including Optinuity Alliance Resources Corp. The Corporate segment recorded pre-tax income of $41 million in the fourth quarter of 2011 compared with pre-tax income of $34 million in the fourth quarter of 2010. Corporate segment fees and reimbursements totaled $87 million in the fourth quarter of 2011 compared with $18 million in the fourth quarter of 2010. The increase in fees and reimbursements in the fourth quarter of 2011 was driven by a $65 million service fee from a non-insurance affiliate. Changes in the value of outstanding warrants on MBIA Inc. common stock drove a $24 million fourth quarter 2011 net loss on financial instruments at fair value and foreign exchange and a $51 million net gain on such instruments in the fourth quarter of 2010. The Corporate segment also recorded a $25 million net realized gain in the fourth quarter of 2011 resulting from an insurance recovery on a directors and officers insurance policy.