Tag Archives: Ambac

Ambac Financial Group has filed for Chapter 11 bankruptcy, according to an announcement issued by the company after the market closed on Monday. The company insured billions in subprime mortgage securities during the housing boom, but has taken hit after hit since the market collapsed. Ambac says it was unable to raise additional capital as an alternative and could not reach an agreement with its debt holders. The IRS has also been investigating Ambac's accounting practices related to $700 million in tax refunds.

Ambac Financial Group, Inc. opened a lawsuit against Bank of America Corp. over improperly underwritten loans the company says the bank's Countrywide unit used to induce it into purchasing mortgage-backed securities. After reviewing 6,533 of the 268,000 loans it insured for Countrywide, Ambac found that 97 percent of the reviewed loans didn't follow the underwriting guidelines Countrywide said it used to assemble loans.

The Wisconsin Office of the Commissioner of Insurance has taken control of mortgage bond insurer Ambac Assurance Corp.'s ""most troubled holdings,"" as the insurance commissioner phrased it. The commandeering occurred last week, as rumors began to surface that the company may be headed for bankruptcy, which could trigger billions of dollars in losses for municipalities who invested in mortgage securities insured by Ambac.