Banks May Be Liable For MBS Losses, Ambac Unit Says

Law360, New York (November 19, 2010, 1:01 PM EST) -- Ambac Assurance Corp., a unit of bankrupt bond insurer Ambac Financial Group Inc., has said that banks may be on the hook to pay for losses the company incurred when it insured certain residential mortgage-backed securities that tanked because of the U.S. housing crisis.

The company is in the midst of reviewing loans underlying RMBS securities issued by Bank of America NA's Countrywide Financial Corp. unit, First Franklin Financial Corp. and affiliates of Citigroup Inc., among others, it said in a filing with the U.S. Securities...
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