ABK : Bounce candidate for tomorrow..check out this news..it is a positive for this beaten down stock..
Ambac 'Financially Strong' - Wisconsin Regulator >ABK
Last Update: 2/6/2008 6:00:16 PM
By Michael R. Crittenden
OF DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The state insurance regulator for troubled bond insurer
Ambac Financial Group Inc. (ABK) said the company does not show signs of
insolvency, according to a letter released Wednesday by a U.S. House lawmaker.
"The most recent statutory financial statements of Ambac and all the information
we have from the company show a financially strong company that has sufficient
ability to meet its obligations," Wisconsin Insurance Commissioner Sean Dilweg
wrote in a Feb. 4 letter.
The letter was released by Rep. Paul Kanjorski, D-Penn., who chairs the House
subcommittee with oversight over the insurance industry. Kanjorski has scheduled
a Feb. 14 hearing to focus on turmoil in the bond insurance industry caused by
ratings downgrades of major firms amid massive projected losses tied to
securities backed by subprime loans.
Ambac is just one of the bond insurers that has been caught up in the storm,
after its ratings were cut by Fith Ratings. Dilweg said the company needs to
develop a plan to address rating agency reviews and downgrades.
"They are calling into question, not so much the solvency of these companies, but
rather the ongoing franchise value of these insurers," Dilweg wrote.
Overall, however, he said Amback currently "meets or exceeds" all of the
financial solvency requirements currently set forth in state law.
-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273;
michael.crittenden@dowjones.com
(END) Dow Jones Newswires
February 06, 2008 18:00 ET (23:00 GMT)
All posts are only my opinion and are not buy or sell recommendations.
