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Ambac Posts $2.4 Billion Q3 Loss on “False” MBS Recovery 

Nov 05, 2008By

Ambac Financial Group, Inc. [stock ABK][/stock] said Wednesday morning that it lost $2.4 billion, $8.45/share, as it absorbed at least $3 billion in write-downs and costs to pay anticipated claims amid further deterioration in the U.S housing market. The quarterly loss widened a $360 million, or $3.53 a share, loss from a year earlier, and were far greater than analysts had expected — leading shares to fall more than 25 percent in early trading on Wednesday.