Ambac Financial Group Inc. is a major bond insurer based in New York. It's a holding company whose subsidiaries provide financial guarantee insurance and other products, including credit derivatives, to public and private sector clients.
Ambac has been reeling from a foray into insuring mortgage-backed securities and has been beset by ratings downgrades. The company is planning to restart its stalled municipal-bond guaranty business through its Everspan Financial Guarantee Corp. subsidiary.
The turmoil has led to turnover at the top: The company had three chief executive officers in 2008. David Wallis, formerly Ambac's top risk manager, is now CEO.
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