Ambac Financial Group Inc (AMBC)

[Joel Haley]

As I have found the rehabilitation account (bad bank) was already setup before the closing of last Quarter, before or on the 25th of March all the bad loans were transfered to the rehabilitation/segraded account.

http://www.marketwatch.com/story/ambac-f...

Regulatory Update (from ABK earnings report)

"As announced in the press release dated March 25, 2010, OCI commenced the Segregated Account Rehabilitation Proceedings........ As a result of the actions taken by OCI, financial guarantee payments on securities guaranteed by AAC which have been placed in the Segregated Account are no longer under the control of Ambac management. In addition, Ambac announced that it has reached a non-binding agreement on the terms of a proposed settlement agreement with several counterparties to commute substantially all of its remaining CDOs of ABS."


READ THIS:

Those policies are OFF the books of AAC/ABK thus in the current earnings report ABK will simply not have those liabilities. As clearly stated its a seperate account from AAC and AAC is no longer responsible for those policies (unless the Judge removes them from the segrated account (bad bank back to AAC), which I believe only happened in one occasion, the data is on ABK site.

Below it explains it all very well.

http://ambacpolicyholders.com/questions/

" Under Wisconsin insurance law, the Segregated Account is treated as a separate insurer from AAC for purposes of rehabilitation. As a result, the rehabilitation of the Segregated Account is not a rehabilitation of AAC."

Good for ABK!

"Installment premiums still need to be paid in order to continue coverage under policies allocated to the Segregated Account. There are no changes to how you make your premium payments."

Good for ABK!

"While certain policies have been allocated to the Segregated Account, AAC 's General Account will continue to administer the policies, including collecting premiums. Any installment premiums received by AAC's General Account in conjunction with Segregated Account policies have been pledged to secure the General Account's obligations to the Segregated Account."

So AAC as I understand it will be "collecting premiums" for administering the (bad account) but the funds will be pledged to secure the General Accounts obligations and will NOT be responsible for the liabilities of the segraded account where all the "bad" accounts are in. The policies will be settled at $0.25/dollar. An amazing plan the results will show this Q earnings, IMHO.

Invest safe, pick a good insurance!

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_A/threadview?m=tm&bn=126&tid=430615&mid=430615&tof=2&frt=2