Taylor Riggs

Assured Guaranty Ltd. reported higher operating earnings than expected in the first quarter due to a large out-of-court settlement, but said new business production in public finance fell by about one-half compared to the same quarter last year.

M.R. Beal & Co. has hired James Cortese as a senior vice president and underwriter in the fixed-income sales and trading department. He reports to Jay Alpert, head of municipal sales, trading, and underwriting activities.

Ambac Financial Group Inc., the holding company for bankrupt bond insurer Ambac Assurance, has agreed to settle a lawsuit claiming it misled shareholders about the risks the company took on insuring subprime mortgages.

MBIA Insurance has filed a motion in the New York State Supreme Court seeking documents from Credit Suisse about residential mortgage-backed securities it insured. According to the lawsuit, Credit Suisse failed to follow guidelines it established with the insurer and MBIA has suffered large losses as a result.

New issuance remains sparse with a light calendar this week on the heels of last week’s slim pickings.

Sterne Agee has hired Justin Resuello as a municipal credit analyst as the firm continues to expand its footprint within the municipal sector. Resuello joins the Birmingham, Ala.-based firm’s New York office.

Piper Jaffray & Co. has opened a new office in Charlotte, N.C., and made its first four hires as the investment bank continues its national expansion and strengthens its presence in the municipal trading and sales arena.

NEW YORK - The New York State appeals court has ruled that the New York Insurance Department must hand over e-mails and documents regarding the restructuring of bond insurer MBIA Insurance Corp.

Whether the New York Insurance Department can appeal a ruling that ordered it to hand over e-mails and documents regarding the restructuring of bond insurer MBIA Insurance Corp. could be decided soon.

Long-term municipal bond issuance remains extremely light so far in 2011, down 53% through the end of April versus the same period last year.

Moody’s Investors Service Wednesday downgraded New Jersey’s outstanding general obligation bonds to Aa3 from Aa2 and cut all the state’s appropriation-backed debt to A1 from Aa3.

Wells Fargo Securities has hired three new public finance investment bankers as the firm seeks to expand its program nationally.

Jefferies & Co. has hired David Murphy as managing director for corporate bond sales in its investment-grade sales and trading group.