Ambac Goes After Citigroup Over $2B In CDS

Law360, New York (August 6, 2009, 3:28 PM EDT) -- Ambac Credit Products LLC has sued Citigroup Inc. and Credit Suisse Alternative Capital Inc. for allegedly misleading Ambac into assuming $2 billion in potential liabilities associated with mortgage-backed securities from Citigroup through credit default swaps.

According to a complaint filed Monday in the Supreme Court of the State of New York, Ambac entered into a series of CDS in 2007 under which it agreed to cover losses to the senior tranche of a mortgage-backed collateralized debt obligation known as Ridgeway II created by Citigroup.

Through the...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.