Wednesday, November 19, 2008

Ambac to Pay $1 Billion to Settle $3.5 Billion of CDO Contracts

I think this could provide some fuel for the rocket!

http://www.bloomberg.com/apps/news?pid=20601087...

Ambac to Pay $1 Billion to Settle $3.5 Billion of CDO Contracts
By Jody Shenn

Nov. 19 (Bloomberg) -- Ambac Financial Group Inc., the second-largest bond insurer by outstanding guarantees, agreed to pay $1 billion to cancel its default protection on $3.5 billion of collateralized debt obligations.

The settlement will result in positive adjustments to the company's mark-to-market and impairment reserves, according to statement today from the New York-based company.

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