Ambac May Raise More Capital After Reporting Loss |
| Bloomberg - Apr 24, 2008 |
Ambac Financial Group Inc., the bond insurer that raised $1.5 billion last month, may be forced to seek more capital after it lost money for the third straight quarter.
Ambac's $1.66 billion loss for the three months ended March 31, announced yesterday, sent the shares tumbling 43 percent and sparked concerns that the company's AAA credit rating wasn't as safe as investors thought. Goldman Sachs Group Inc. analyst James Fotheringham estimates Ambac and larger rival MBIA Inc. may need to raise $3.4 billion each to fill capital shortfalls.
``Just when you thought things are getting back to normal, there are these horrible numbers,'' said Robert Haines, an analyst at CreditSights Inc., an independent bond research firm in New York. ``If trends like this continue, they are going to have to go back to the markets very soon.''
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- Posted: 2008-04-24 08:49:14
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