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[$pmlg]

$ABK continues upwards move as expected...

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trading higher than 200ma of .85 closes above that then:

.90 .95 1.02 1.16 1.25 in play
Quote:
Lehman in deal that calls for Ambac Assurance to drop US$6.1 billion in claims
By Eileen Aj Connelly, The Associated Press
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NEW YORK, N.Y. - Lehman Brothers Holdings Inc. has reached a deal with Ambac Assurance Corp. that calls for the troubled bond insurer to drop US$6.1 billion in claims against the bankrupt investment bank.

A hearing date of Oct. 20 was set by the U.S. Bankruptcy Court in New York to review the deal, which was submitted by Lehman lawyers Tuesday.

The deal calls for Ambac Assurance, the main subsidiary of Ambac Financial Group Inc., to withdraw 60 claims filed against Lehman and its various subsidiaries, which exceed $6.1 billion. The claims maintained Lehman breached its obligations related to certain residential mortgage-backed securities.

Ambac Assurance, which was largely taken over by Wisconsin state regulators last year because of its continuing losses related to complex securities linked to mortgages, will in exchange be released from any claims filed by Lehman.

Lehman had filed claims totalling tens of millions related to several disputed Ambac-insured derivatives deals. Because of Wisconsin's takeover of Ambac's mortgage-linked businesses, Lehman was hampered in pursuing its claims.

In the court filing, Lehman said the deal is in both companies' best interests, because it eliminates "the need to engage in protracted, complex litigation in multiple jurisdictions," that could take "months, if not years."

The agreement means the two companies would no longer owe each other any payments related to the claims