I thought they split good assets and bad ones. I have no idea how that affected shareholders. Company is trash to me. But if they did somehow get away with shoving the bad assets somewhere off in space, then I guess they can claim profits. I remember some interview where ceo was sayin they could do this. But really I don't remember how their "plan" worked or who ate the loss.
Ambac and the financial guarantee industry faced historic challenges in 2007 and into 2008. The global credit market distress, the swift collapse of the subprime mortgage market midway through the year, and the subsequent rating agency downgrades of various mortgage-backed securities, made 2007 the most difficult period in our 37-year history.This reality is reflected in our financial results, which include the first reported financial loss for Ambac. Most notably, these events undermined confidence in Ambacâs business model and in our ratings outlook. RAISING CAPITAL AND MAINTAINING OUR RATINGS Restoring market confidence and maintaining our important triple-A ratings with Moodyâs and Standard & Poorâs has been our top priority. In early March 2008, we announced a $1.5 billion common stock and equity unit offering that was successfully executed in a difficult environment. As a result, our capital position has been strength- ened and our triple-A franchise has been preserved. Our professionals continue to be focused on actively meeting the needs of issuers and investors, improving financings with our valuable guarantee. Let me emphasize this important point: solvency has never been an issue.Ambac has adequate capital, a strong balance sheet and a steady stream of future earnings assured through our unearned premiums. It is inconceivable that any investor holding an Ambac-insured bond will miss a single principal or interest payment.We are proud that, ultimately, we addressed our capital issues with a market-based solution that balanced the interests of all our stockholders. We are optimistic about Ambac and about our industry.We believe the fundamental strengths of our business model remain intact.
Mark-to-Market accounting rules has been relax to Mark-to-Myth. Off-Balance Sheet Accounting are now encouraged which is an about face change in attitude after the Enron scandle.
none of this really matters much if you're there to trade it...they destroyed earnings estimates and I knew I should've hung around and waited for them to report earnings....costly mistake on my part