Ambac Financial Group Inc (AMBC)

[fresco]

This article from The Atlantic reminds me of the two books I read recently;

"The Big Short" by Michael Lewis
"Capitol Offence" by Michael Hirsh

These are really fun books as reading them gets your blood rate up besides getting you inside the traders and government processes.

Before I read these books it seemed likely that Ambac would have some sort of case against the fraud passed on to them from the banks to the credit agencies to the insurers, but I was skeptical. But now there's a case to be made; this wasn't simply that the insurers didn't do due diligence. They really couldn't see what was in these derivatives because it was actively hidden.

However, proving fraud requires a paper trail and obvious intention, always difficult. Get ready for a long court schlogg.