NEW YORK (Reuters) - MBIA Inc plans to urge lawmakers and regulators to curtail what the bond insurer calls "the unscrupulous and dangerous market manipulation activities of short sellers," according to a copy of written testimony obtained by Reuters.
In the testimony, prepared for a February 14 hearing before the subcommittee of the U.S. House Committee on Financial Services, MBIA says the practice and dissemination of "half-truths and misleading information" should be "investigated and curtailed."
MBIA's testimony says the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises should work with the Securities and Exchange Commission.
The testimony specifically mentions Bill Ackman, founder of hedge fund Pershing Square Capital Management, which has been vocal about its short position in the bond insurers.
"MBIA notes that Mr. William Ackman is appearing on the hearing on February 14th as an 'industry expert.' Mr. Ackman is in fact not involved in the industry in any capacity except as that of a short-seller, and, accordingly, MBIA questions the characterization of Mr. Ackman's expertise," the testimony says.
An appendix to the testimony has a timeline of statements and actions by Ackman and other short sellers regarding the company going back to May 2007.
(Reporting by Dan Wilchins, editing by Leslie Gevirtz and John Wallace)
