Ambac Posts Wider Loss
Ambac; #2 bond insurer; whose stock lost 93% of its value in the last year...
reported a 87% decline in new business and wider than expected Q1 loss of $1.66 billion.
$3.1 billion in charges for subprime-mortgage securities; $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions.
Estimated losses on home loan debt for next quarter increased to $2 billion.
CEO Michael Callen: "The housing market crisis continues to disrupt the global credit markets and our credit derivatives and direct mortgage portfolios were severely impacted once again."
Is Shareholder Dilution the Solution? Ambac staved off the loss of its AAA rating at Moody's Investors Service and Standard & Poor's by raising $1.5 billion in a March stock sale.
The $1.5 billion sale of stock and convertible units nearly tripled Ambac's outstanding common shares to 285 million.
The company this week said it's seeking shareholder approval to increase authorized shares to 650 million from 350 million.
Hattip to Bloomberg.
reported a 87% decline in new business and wider than expected Q1 loss of $1.66 billion.
$3.1 billion in charges for subprime-mortgage securities; $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions.
Estimated losses on home loan debt for next quarter increased to $2 billion.
CEO Michael Callen: "The housing market crisis continues to disrupt the global credit markets and our credit derivatives and direct mortgage portfolios were severely impacted once again."
Is Shareholder Dilution the Solution? Ambac staved off the loss of its AAA rating at Moody's Investors Service and Standard & Poor's by raising $1.5 billion in a March stock sale.
The $1.5 billion sale of stock and convertible units nearly tripled Ambac's outstanding common shares to 285 million.
The company this week said it's seeking shareholder approval to increase authorized shares to 650 million from 350 million.
Hattip to Bloomberg.
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