Wednesday, February 13, 2008

Ambac Turns Down Buffett Reinsurance Offer

Says it welcomes any "constructive offers to deal with the current uncertain environment." But deal offered by Buffett's Berkshire Hathaway "would result in little to no net capital relief to support Ambac's ratings."


Buffett is wanting to purchase the Municipal Bond Insurance Portion of Ambac's portfolio...Problem is that Municipal Bonds are highly unlikely to default. That is the most reliable part of the business.

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