As of June 30, 2012, the corporate activities of MBIA Inc. had $290 million of cash and highly liquid assets available for general corporate liquidity purposes.Wind-down Operations The Company’s wind-down operations comprise its ALM and Conduit businesses, both of which are in run-off. The Company’s wind-down operations recorded a pre-tax loss of $81 million in the second quarter of 2012 compared with a pre-tax loss of $167 million in the second quarter of 2011. The pre-tax loss in the second quarter of 2012 was driven by a $59 million net loss on financial instruments at fair value and foreign exchange resulting primarily from losses on asset sales to the Corporate segment and $35 million in VIE operating expenses resulting from a fee paid to a non-insurance affiliate for administrative and other services, partially offset by $33 million in net gains on the extinguishment of debt. The losses on asset sales to the Corporate segment are not reflected in the Company’s consolidated financial statements due to intercompany eliminations. The pre-tax loss in the second quarter of 2011 was driven by a $133 million net loss on financial instruments at fair value and foreign exchange, primarily from mark-to-market losses resulting from a combination of an improved market perception of MBIA Corp.'s credit quality as well as adverse movements in interest rates and currency exchange rates. Ongoing negative net interest spread in the ALM business, a portion of which is included in the $59 million net loss on financial instruments at fair value and foreign exchange, totaled approximately $32 million in the quarter. As of June 30, 2012, the ALM business had cash and short-term investments of $330 million, of which $46 million was not pledged directly as collateral. An additional $327 million of cash and short-term investments as of June 30, 2012 was pledged to a swap counterparty and netted against the derivative liability in the Company’s financial statements.