Bankruptcy Judge OKs Ambac's Use Of Funds

Law360, New York (December 21, 2010, 5:55 PM EST) -- Bankrupt Ambac Financial Group Inc. resolved conflicts Tuesday with a U.S. trustee over the use of its existing cash management system and its ability to maintain money market and bond investment practices for accounts worth more than $63 million.

Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York granted the bond insurer a waiver to continue using the accounts, saying that even though the funds were not backed by the government they were invested with reputable institutions.

U.S. Trustee...
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