Ambac: Heading for credit default???
JP Morgan thinks so, in the near term...
Does anyone remember February 2008 when the monolines were first being reviewed for downgrade and the market went in a frenzy and the CEO of Ambac was on CNBC? Who remembers that and what did you think then?
"We do not agree with the models! We repeat we are at no risk of defaulting. We have over $1B in claims paying resources!" the CEO pleaded over and over again. Two years later and after at least two capital raising activities, Ambac is now at the end of their rope.
Good thing they did not allow them to just shirk their responsibilities by moving the assets into a new subsidiary (a.k.a the February 2009 Ambac plan).
Here is the link -> "Ambac Insurance Unit May Be Put in Receivership"
Just a year ago this would have shook the financial sector. But since we started handing out money and the Dow is up, "hey, no problem!"