NEW YORK - Thomas G. McLoughlin is stepping down from his role as president and chief executive officer at National Public Finance Guarantee Corp. to join UBS Financial Services as head of its municipal research division.
National, the municipal bond insurer created by MBIA Inc. in February 2009, announced the news Tuesday morning.
McLoughlin, who has been at MBIA since 1994, steps down July 23. He was named CEO of National upon its formation after spending three years as head of MBIA’s global public finance division.
National maintains the largest public finance portfolio in the bond insurance industry, with $499.2 billion insured. However, MBIA and its subsidiaries have not written new bond insurance policies since being stripped of their triple-A ratings in 2008 due to exposure to mortgage-related structured finance bonds.
McLoughlin is joining UBS to be head of municipal research within the firm’s wealth management research group, according to spokesman Karina Byrn.
“We’re the only major firm on the Street that has a dedicated research team for private clients and financial advisers,” Byrn said. “He’s going to join that team.”
William C. Fallon has been named interim CEO at National. Fallon is currently president and chief operating officer of MBIA. He joined the company in 2005 as head of corporate and strategic planning.
National said McLoughlin’s departure does not affect the insurer’s intention to re-engage in the U.S. municipal bond insurance business.
The company, rated A by Standard and Poor’s and Baa1 by Moody’s Investors Service, is officially open for business but is not expected to write new policies until litigation contesting the creation of National is resolved.
“Tom McLoughlin’s many contributions to the success of our business over the past 16 years cannot be overstated,” Fallon said in the release. “He was instrumental in building National’s high-quality insured portfolio and positioning the company as the world’s largest U.S. public finance-only guarantor. We wish him continued success in the future.”
