Bond insurer Ambac Financial Group Inc. said that a consultant, who was appointed by a Wisconsin regulator to oversee an account that covers claims on the riskiest securities, has left the position.
Roger Peterson, a former deputy administrator at the Office of the Commissioner of Insurance for the State of Wisconsin, Ambac’s regulator, left as of Jan. 22, according to an Ambac news release. Wisconsin’s insurance commissioner continues to have authority over the account, which holds policies that insure residential mortgage-backed securities, credit default swaps and student loans.
J.P. Wieske, a spokesman with the Wisconsin Office of the Commissioner of Insurance, declined to comment about Peterson’s departure or whether he would be replaced.
Under terms of the consulting agreement Peterson was responsible for managing the orderly settlement of a $50 billion portfolio of policies that posed the greatest threat to the company’s financial stability. On Jan. 26, JPMorgan Chase & Co. agreed to pay Ambac $995 million to resolve claims that the insurer was duped into insuring mortgage bonds backed by shoddy loans.
Under the consulting agreement, Peterson agreed to act for the benefits of policyholders and not in the interests of security holders of Ambac, according to a June 2011 news release when he was appointed.
"We thank Roger Peterson for his service to the segregated account and to Ambac,” Nader Tavakoli, Ambac’s chief executive, said in a statement. “We enjoy a very constructive relationship with the commissioner’s office and look forward to building on our relationship with the commissioner to the benefit of Ambac’s policy holders following Mr. Peterson’s departure as SDC."