Accrued Interest shares with us his thinking on why Ambac (NYSE: ABK), in particular, will be looking toward breaking up the monoline insurer. His mention that the challenges to such a move “would be numerous”, is putting it lightly. Litigators and securities lawyers across the country are licking their chops at yet another calamity from the subprime crisis. Too bad we can’t invest in them…
Australia and New Zealand Banking Group Ltd (ANZ), Australia’s 3rd largest lender, noted it may see a $200 million write down thanks to its interest in a US bond insurer. The bank shares are seeing a significant decline currently, faltering nearly 6 percent. ANZs announcement further delineates the ripple effects of bond insurer uncertainty across the globe, not just in the United States and not just in municipal bonds.
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