Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

AMBAC FINANCIAL GROUP, INC.

(AMBC)
  Report
Real-time Estimate Cboe BZX  -  10:37 2022-12-02 am EST
16.36 USD   +0.99%
11/29Everspan Group Announces Retirement of Wyatt Blackburn
BU
11/28Compass Point Starts Ambac Financial Group at Neutral With $18 Price Target
MT
11/09Transcript : Ambac Financial Group, Inc., Q3 2022 Earnings Call, Nov 09, 2022
CI
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Ambac Settles With Bank of America for $1.84 Billion; Shares Soar

10/07/2022 | 08:25am EST

By Dean Seal


Ambac Financial Group Inc. and Bank of America Corp. have resolved longstanding litigation related to residential mortgage-backed securities with a $1.84 billion settlement, sending Ambac's shares soaring.

Ambac said Friday that the companies agreed to resolve claims that residential mortgage-backed securities it insured prior to the financial crisis were backed by loans that had been underwritten with substandard origination practices by the now-defunct Countrywide Financial, which Bank of America purchased in 2008.

The settlement exceeds the amount of subrogation recovery logged on Ambac's most recent financial statements, and the company said it expects to record a gain of $390 million with the agreement.

The insurer reported $1.48 billion in gross subrogation recovery related to the residential mortgage-backed securities litigation, $1.38 billion of which was tied to the Bank of America case.

A portion of the gain will be recognized on Ambac's third quarter financial statement, with the rest following in the fourth quarter, it said.

As part of the deal, Ambac said its Ambac Assurance Corp. subsidiary will repay more than $1.42 billion in notes.

In premarket trading, Ambac shares climbed more than 23% to $15.82.

Bank of America said in a securities filing that Ambac had been seeking more than $3 billion in damages and that the banking giant has previously accrued for certain amounts of the settlement payment.

As a result of the settlement, Bank of America said it expects to incur a pretax expense of $354 million in the third quarter, which will cut earnings by 3 cents a share.

Bank of America shares were up slightly at $31.62 in premarket trading.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

10-07-22 0824ET

Stocks mentioned in the article
ChangeLast1st jan.
AMBAC FINANCIAL GROUP, INC. 1.73% 16.51 Delayed Quote.1.31%
BANK OF AMERICA CORPORATION -1.24% 36.035 Delayed Quote.-17.85%
All news about AMBAC FINANCIAL GROUP, INC.
11/29Everspan Group Announces Retirement of Wyatt Blackburn
BU
11/28Compass Point Starts Ambac Financial Group at Neutral With $18 Price Target
MT
11/09Transcript : Ambac Financial Group, Inc., Q3 2022 Earnings Call, Nov 09, 2022
CI
11/08Ambac : Q3 Earnings Snapshot
AQ
11/08Earnings Flash (AMBC) AMBAC FINANCIAL GROUP Posts Q3 EPS $7.37
MT
11/08AMBAC FINANCIAL GROUP INC Management's Discussion and Analysis of Financial Condition ..
AQ
11/08Tranche Update on Ambac Financial Group, Inc.'s Equity Buyback Plan announced on March ..
CI
11/08Ambac Financial Group, Inc. Reports Earnings Results for the Third Quarter and Nine Mon..
CI
11/08Ambac Reports Third Quarter 2022 Results
BU
11/08Ambac Financial Group Acquires Majority Stakes in All Trans Risk Solutions, Capacity Ma..
MT
More news
Analyst Recommendations on AMBAC FINANCIAL GROUP, INC.
More recommendations
Financials (USD)
Sales 2022 368 M - -
Net income 2022 372 M - -
Net Debt 2022 - - -
P/E ratio 2022 1,94x
Yield 2022 -
Capitalization 731 M 731 M -
Capi. / Sales 2022 1,99x
Capi. / Sales 2023 2,17x
Nbr of Employees 132
Free-Float 94,5%
Chart AMBAC FINANCIAL GROUP, INC.
Duration : Period :
Ambac Financial Group, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AMBAC FINANCIAL GROUP, INC.
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 2
Last Close Price 16,26 $
Average target price 17,00 $
Spread / Average Target 4,55%
EPS Revisions
Managers and Directors
Claude L. LeBlanc President, Chief Executive Officer & Director
David Trick Chief Financial Officer, Treasurer & Executive VP
Jeffrey Scott Stein Independent Chairman
Michael Reilly Chief Information & Administrative Officer
C. James Prieur Independent Director
Sector and Competitors