Mass. Queries MBIA, Ambac Over Risky Bonds

Law360, New York (January 23, 2008, 12:00 AM EST) -- Massachusetts securities regulators have issued subpoenas to Ambac Financial Group and MBIA Inc. and will take a closer look at whether two of the country's largest bond insurers took steps to disclose the full extent of their exposure to risky securities.

Secretary of the Commonwealth William F. Galvin subpoenaed MBIA and Ambac last week in an effort to determine if they adequately informed customers that they had insured repayment on high-risk bonds.

The subpoenas demand a list, beginning in January 2006, of all the Massachusetts public...
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