Bid To Block $4.6B Ambac, Bank Deal Fails

Law360, New York (May 26, 2010, 5:00 PM EDT) -- A Wisconsin state judge has thwarted an attempt by policyholders to stymie a $4.6 billion compromise between an Ambac Financial Group Inc. insurance unit and a group of banks that had insurance policies covering mortgage-backed securities.

Circuit Judge William D. Johnston issued his ruling from the bench at a hearing at the Circuit Court of Lafayette County, Wis., on Tuesday, denying emergency motions from the policyholders to block the Wisconsin insurance commissioner's plans to settle claims over faltering securities between 17 banks and Ambac Assurance Corp.,...
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