Ambac Financial (ABK) roared 32.33% to finish the day at 78 cents. Allan Edwards the CEO of The Markets Are Open said "Ambac is back above 70 cents!" The stock has not passed the 70 cent barrier since it fell through this level on August 10 of this year. The stock was still in the process of declining from its 52 week high of $3.39 which it reached in late April. Traders consider 70 cents a key technical barrier for Ambac. Ambac is also looking for payouts in lawsuits filed against investment banks such as Bank of America who Ambac claims, improper practices led to some of their losses. Shareholders also weighed the withdrawal of Ambac's claim against Lehman Brothers for $6.1 billion. This withdrawal means that the creditors of Lehman will not be able to sue Ambac for liabilities on their derivative contracts with the insurer.
Ambac is a bond insurer whose toxic assets, worth $64 billion, were seized by Wisconsin state regulators in March. At the time, the company announced that it may eventually file for bankruptcy.
No comments:
Post a Comment