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http://in.reuters.com/article/governmentFilingsNews/idINN181… UPDATE 1-Ambac says capital well above regulatory minimum Wed Nov 18, 2009 8:43pm IST Email | Print | Share | Single Page [-] Text [+] * Ambac 3rd-quarter statutory capital of $856 mln * Results follow concerns over potential shortfall * Shares rise 37 percent NEW YORK, Nov 18 (Reuters) - Ambac Financial (ABK.N: Quote, Profile, Research) said on Wednesday that the statutory capital of its main unit was well above a regulatory minimum at the end of the third quarter, easing concerns that the company would fall short of funds and be at risk of being taken over by state officials. Shares of Ambac soared 37 percent to 96 cents after the disclosure in a filing with the U.S. Securities and Exchange Commission. Ambac said statutory capital for its Ambac Assurance Corp was $856 million. That is many times more than the minimum capital base of $2 million required of bond insurers by the insurance regulator for Wisconsin, where the company's bond insurance unit is based. Regulators can seize a company when capital -- a surplus of assets over liabilities -- sinks below regulatory minimums. The unit's capital benefited from several factors, including $311 million from reinsurance payments, and its ability to commute, or cancel, four asset-backed securities derivative contracts that had been worth more than $5 billion. The company said it also expected to receive $440 million in tax refunds as a result of new legislation. Ambac, once the No. 2 U.S. bond insurer, warned on Nov. 10 that bankruptcy could be an eventual possibility, based on projections that it could run out of liquidity by the second quarter of 2011. Like larger rival MBIA Inc (MBI.N: Quote, Profile, Research), Ambac has struggled to write new business since it lost top-notch ratings last year and has continued to struggle with derivatives losses, including losses tied to repackaged residential mortgage debt. (Reporting by Lilla Zuill; Editing by Lisa Von Ahn) |
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| aus der Diskussion: | AMBAC REBOUND- Ratings, Analysen, Charts, News |
| Autor (Datum des Eintrages): | Klavierspieler (18.11.09 16:25:53) |
| Beitrag: | 20 von 133 (ID:38411719) |
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