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Ambac Does Not Make November 1 Coupon Payment, To File Bankruptcy Within A Month If Unable To Raise Additional Capital

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Mon, 11/01/2010 - 08:07 | 690121 TheGreatPonzi
TheGreatPonzi's picture

Will it be bailed-out?

Mon, 11/01/2010 - 08:11 | 690126 LeBalance
LeBalance's picture

doesn't it need to be?  (in order for the underlying asset not to see the light of day: mark-to-market)

Mon, 11/01/2010 - 09:45 | 690292 ZeroPoint
ZeroPoint's picture

Nah. It's not TBTF. Instead, it will be shotgun married to AIG, a 'solid fundamentals' business that never, ever needed a bail-out.


End snark here.


Mon, 11/01/2010 - 08:11 | 690127 FischerBlack
FischerBlack's picture

LOL, their greatest asset is $7 Billion in losses. And we're not in the Matrix?

Mon, 11/01/2010 - 08:55 | 690184 Eternal Student
Eternal Student's picture

When money (as in those FRN's in your wallet) is debt, I suppose that would make sense. Or at least be consistent.

Mon, 11/01/2010 - 08:13 | 690130 MaximumPig
MaximumPig's picture

Feds had their chance to save AMBAC when it would have helped the municipalities whose bonds AMBAC insure, not gonna happen now.

Mon, 11/01/2010 - 08:14 | 690132 TheGreatPonzi
TheGreatPonzi's picture

America is an incredible country. You can't go bankrupt. Create companies, if they win you win, if they lose you win. What a wonderland.

Mon, 11/01/2010 - 08:15 | 690133 Handle with care
Handle with care's picture

I remember two years ago everyone was freaking out that if the monolines fail the market will collapse yet the futures barely moved

Mon, 11/01/2010 - 08:18 | 690134 TheGreatPonzi
TheGreatPonzi's picture

I don't know why we still care about companies and the real economy. The only thing that matters is the central bank policies and their impact on the USD.

Mon, 11/01/2010 - 08:39 | 690165 Ricky Bobby
Ricky Bobby's picture

+10 I am sick of the Fed daytrading our economy.

Mon, 11/01/2010 - 10:03 | 690334 Rahm
Rahm's picture

Perfect name.

Mon, 11/01/2010 - 08:28 | 690147 ZackAttack
ZackAttack's picture

Should've died three years ago. Just goes to show you... the bezzle and bullshit can kick the can further than you could ever imagine.

Mon, 11/01/2010 - 08:34 | 690152 plocequ1
plocequ1's picture

Dont worry Kids, The  ficticious legend called "The middle class Taxpayers" will pay the bill.

Mon, 11/01/2010 - 10:29 | 690419 cowdiddly
cowdiddly's picture

+++I hear that they are going to pass a squatters tax. This will only affect occupants of foreclosed homes but does not apply to the Hoovervilles springing up all around every major city. That will be covered under the new tent( TARP II) tax.

Mon, 11/01/2010 - 10:46 | 690499 kaiserhoff
kaiserhoff's picture

Obamavilles full of hopium

Mon, 11/01/2010 - 12:40 | 690854 RockyRacoon
RockyRacoon's picture

You sure they aren't Bushburgs?  I don't think sales of tents spiked on inauguration day.

Mon, 11/01/2010 - 08:33 | 690157 firstdivision
firstdivision's picture

For some reason I see this as a shot across the bow of the financial world.  They now see that the threads they are hanging by are becoming frayed.  Thinking it might be time to take a lawn chair onto the roof to watch the fireworks.

Mon, 11/01/2010 - 08:56 | 690187 LongSoupLine
LongSoupLine's picture

Interesting...I don't see anything about this on CNBS, so it must not exist.

Mon, 11/01/2010 - 09:10 | 690203 DollarDive
DollarDive's picture

Wonder what the effect will be on the loss of credit rating on all the bonds they insure will be ? If a bond goes from AAA to caa1, can the banks still hold them in their investment grade portfolio ?  

Mon, 11/01/2010 - 09:14 | 690213 curbyourrisk
curbyourrisk's picture

Paging Charlie Gasparino......Come in Charlie....

Mon, 11/01/2010 - 09:18 | 690223 Miss Expectations
Miss Expectations's picture

Here's a Bloomberg interview with Michael Callen (September 28, 2008)...Hear him say (about ratings downgrade)..."Not a solvency issue." @ 5:00


Mon, 11/01/2010 - 09:29 | 690243 DollarDive
DollarDive's picture

Callen is another crook that should be in prison.

Mon, 11/01/2010 - 09:19 | 690225 slaughterer
slaughterer's picture

No bailout, no pre-pack.  Ambac BK = Christmas gift to their CDS counter-parties.   TBTF escape unscathed from ABK's claims concerning MBSs issued by TBTFs.  Uncle Sam ain't going to bail out ABK.  Everybody happier with a Pre-Pack--except equity and preferred.

Mon, 11/01/2010 - 09:30 | 690246 Waterfallsparkles
Waterfallsparkles's picture

Knowing Wall Streets reverse Psychology, I would not be surprised to see a Short Squeeze.

Mon, 11/01/2010 - 09:40 | 690269 ElvisDog
ElvisDog's picture

Oh man, I was counting on that 7.5% coupon payment until 2023. Who could have predicted that income stream would go away??

Mon, 11/01/2010 - 10:00 | 690325 tallystick
tallystick's picture

Large amounts of Ambac CDS in Maiden Lane.

Looks like $50B in Ambac



Mon, 11/01/2010 - 10:34 | 690446 kaiserhoff
kaiserhoff's picture

Implications of the bankrupty are not entirely clear...

Oh, but they are:

1  AMBAC goes belly up

2  Insurance is gone on billions, probably trillions in bonds and derivatives

3 Rating agencies must downgrade

4 From 2 and 3 above - Institutions that can't hold junk debt are forced into fire sales

5 Financial apocalypse


Mon, 11/01/2010 - 11:17 | 690583 partimer1
partimer1's picture

How the f*ck this company survives to this day?  I thought it was gone two years ago. It is amazing to even see it around today. It probably says all about the system and policy.

Mon, 11/01/2010 - 12:37 | 690845 RockyRacoon
RockyRacoon's picture

Can I post my NOLs as an asset as well?  If so, I'm rich!

Mon, 11/01/2010 - 17:31 | 691690 ZeroPower
ZeroPower's picture

I believe you can! When you go to the bank asking for loan, just tell them you've got some future tax liabilities, nay, ASSETS which can serve as collateral!

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