MBIA Inc. CEO Joseph Brown will step down from his position, effective Sept. 15.
He will be succeeded by William Fallon, the company's president and COO. Fallon is also CEO of National Public Finance Guarantee Corp., MBIA's bond insurance subsidiary.
Pressured by its role as an insurer of Puerto Rico's troubled public bonds, National Public Finance announced that it would cease writing business following a ratings downgrade in June. Those developments heightened speculation that MBIA would look to sell itself, especially given that rival Assured Guaranty Ltd. has been vocal about its ambition to consolidate the space. But during an Aug. 9 conference call, Brown downplayed the possibility of any drastic moves in the near term.
The Aug. 10 press release announcing Brown's pending departure as CEO described the change as the fulfillment of a succession plan that has been in the works for the past two years.
MBIA on July 31 announced the resignation of three directors as part of a reassessment of its governance profile. Brown will continue serving as a director until the expiration of his term in May 2018. He does not intend to stand for re-election.