Breaking: Ambac may file for bankruptcy
By Daniel at 10 November, 2009, 7:36 pm
OMG: Ambac warns it may file for bankruptcy a week after it reported $2.2B quarterly profit.
Market surely can turn upside-down in one week or a day.
Bond insurer says it may not have enough money to meet payment due in 2011
Link: http://ftalphaville.ft.com/blog/2009/11/10/82546/ambac-warns-of-bankruptcy-risk/
Hey, has anybody seen Sheila Bair? Give her a call, she’ll bail them out. Oh.. wait they tell me she is running out of cash.
Does anybody have Bernanke’s cell phone number? I think he is at Paulson’s house with the Goldman boys doing God’s work.
Don’t worry we can bail out Ambac. They are a huge company run by over-paid executives, our favorite people to hand tax payer money to. As long as it’s not a bunch of those middle class people, yuck - they are so icky!
quote:
The train wreck that is the bond insurance industry always provides interesting headlines. MBIA, once the sector’s leading light, on Monday reported a $728m loss for the third quarter of 2009. Ambac, its long-time rival, had reported a $2.2bn profit a week prior.
But appearances can be deceptive. Late on Monday, Ambac filed its 1o-Q. The second paragraph of that filing contained the following warning:
Ambac’s available liquidity is currently insufficient to fund its needs beyond the near term and its failure to successfully execute on its current strategies could result in it running out of liquidity in the second quarter of 2011, or potentially sooner
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