Now I will read our Safe Harbor disclosure statement. Our remarks on this conference call may contain forward-looking statements. Important factors, such as general market conditions and a competitive environment, could cause actual results to differ materially from those projected in our forward-looking statements. Risk factors are detailed in our 10-K, which is available on our website at mbia.com. The company cautions not to place undue reliance on any such forward-looking statements. The company also undertakes no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such statement is no longer accurate.

And now, Jay will provide some introductory comments. Jay?

Joseph W. Brown

Thanks, Greg, and good morning, everyone. Chuck is going to take you through our first quarter results in more detail in a few minutes. But in short, our significant actions to bolster liquidity and mitigate volatility resulted in a disappointing adjusted pretax loss for the quarter. It was driven by realized investment losses, some additional losses on insured exposures and litigation costs and expenses, all items that have been impacting our results for the past few years. But looking forward, I firmly believe that potential future volatility has been substantially reduced by a combination of the massive reduction in our insured CDS exposures over the past few years, the near-term prospect for collections of putback recoverables, the continuing, albeit slow, burnout losses in our second-lien RMBS exposures and the impact of a gradually improving economy.

We've continued to make substantial progress in our risk reduction efforts at MBIA Insurance Corporation. So far this year, we have commuted or agreed to commute $11.5 billion of CDS exposures. These agreements were primarily in our insured CMBS and CRE/CDO portfolio. And since 2008, we have commuted or agreed to commute over $67 billion of exposure, dramatically reducing potential future volatility and rating agency capital requirements. However, there's still some work to be done here on a handful of transactions with a few remaining counterparties.

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