Ambac says JPMorgan refused mortgage repurchases

January 25, 2011 by · Leave a Comment
Filed under: Industry News 

Very interesting that JP will not buy-back the paper is purchased as part of the Bear Sterns acquisition.  Not surprising though.  If I had a bunch of known bad or even worst, fraudulent, I would not want to buy it back either.   It would be a instant loss when you write it off.  The article mentions there is over $90 billion dollars of the paper running around like the boogeyman.   If the official number is $90 billion, I am going to assume at least twice that is actually out there.

JP Morgan is digging in, they have set aside a whooping $1.5 billion dollars in legal fees to use to litigate other financial institutions that are going force the issue and make them purchase the paper back.  In closing, a conference call was quoted and I am going to quote it here, “”It’s going to be a long ugly mess”.

Bloomberg – Ambac Assurance Corp., the debt guarantor partly seized last year by Wisconsin’s insurance commissioner, made the claim in a proposed amended complaint in its lawsuit against Bear Stearns’s EMC Mortgage unit, now owned by JPMorgan. Ambac, seeking to add a fraud claim to the case, referenced depositions, e-mail and letters in the filing, which was unsealed Jan. 14 in Manhattan federal court.

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Ambac files for Chapter 11 bankruptcy

November 17, 2010 by · Leave a Comment
Filed under: Industry News 

This story almost passed by without me noticing it.  It has been 2 years since we have had much news from the mono-line insurers.  Looks like Ambac has missed some debt payments and this forced their hands into bankruptcy to try and re-negotiate with their creditors.  This is going to affect the whole sector and we will likely see another insurer go under or some consolidation.

Forbes – Ambac Financial Group said late Monday it has filed for Chapter 11 bankruptcy, after failing to reach agreements with lenders on how to repay its debt. As of June 30, Ambac had $1.6 billion in debt outsanding.

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