More Pain for Ambac

The bond insurer's "crisis of confidence" continues with deeper-than-expected losses in the first quarter

Nearly everyone expected Ambac Financial Group's (ABK) first-quarter earnings to be bad, but few expected losses of this magnitude. The New York-based credit insurer reported a net loss of $1.66 billion, or $11.69 per share, due to writedowns on CDOs and mortgage-backed securities. Even excluding non-recurring items, Ambac lost $6.93 per share, well below the First Call estimate of a loss of $1.51.

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