Thursday, November 11, 2010

Second Largest Bond Insurer Files For Bankruptcy

Ambac Financial Group Inc, which was the second-largest U.S. bond insurer before suffering huge losses on risky mortgages, filed for Chapter 11 bankruptcy on Monday. The company, which filed in Manhattan bankruptcy court, said it had liabilities of $1.68 billion. The company's shares plummeted in after-hours trading to 20 cents, down from 52 cents at their close on the New York Stock Exchange. Ambac faltered after it began chasing higher profits by expanding beyond municipal bond insurance and insuring riskier debt. That move backfired when the housing market crashed and credit markets tightened. Ambac said it was unable to raise needed capital and failed to reach an agreement with senior bondholders that would have allowed it to restructure through a prepackaged bankruptcy.


  1. The I.68 billion losses of this ‘insurance” company will not be able to help the millions of small American investors and foreign investors who invested in the AAA rated frauds and bought bond “insurance” of this company.

    It was all a cook up, of the whole finance sector ,trillions of fake bonds were sold by the banksters ,bonds that they knew must go bad ,but rated AAA by the rating agencies and insured by their partners in the insurance companies to create the illusion that everything was fine and kosher value.
    The finance sector after de-industrializing physically productive America could only create profits from fraud and by creating Ponzi illusions of ongoing profitability by selling American debts as AAA safe insured assets.
    Until they finally crashed the fresh credit supply / money markets and the ponzis collapsed .unable to keep up the interest and dividend payments.

    Ponzi schemes background.

    One of the simplest, yet most effective scams perpetrated on unsuspecting investors for many years have been Ponzi schemes.

    In these schemes the promoter promises investors a very high return on their investment and says it is secure.

    Part of the money deposited by early investors is then used to pay their first dividend cheques or interest. The victims are more than happy to get high dividends. These schemes only require a few people in their early stages to be successful. The swindler continues paying them dividends for a couple of months until they are more comfortable with their investments, and decide to invest more.

    They then begin to urge their friends and relatives to invest as well. Soon, there is a steady flow of funds into the scheme, and the number of investors grows.

    If the swindler is disciplined about how much money is left in the account to pay "dividends", the scam can go on for many years. Theoretically, if the scheme continues to draw in new investors, it could go on indefinitely. In practice such schemes usually fall over because the promoter starts to spend the money too quickly, or the pool of investors starts to dry up.

    But its also game over if those paying the cash flows incomes for the ponzi ,eg those with housing mortgages ,get so weighed down with debts that they cannot even make their interest payments .

    Nobody goes to Jail for bankrupting America with these Ponzi schemes and destroying the legality of property titles , but , some might, possibly , have to pay a million dollar fines as a small tax on their multibillion profits.
    Americas good name in business ,as a suitable honest place to invest money will not recover for decades.
    For more on how Ponzi finance works start here @
    And the related
    And as the super rich and Hollywood elite never can have enough money they are easy prey to ponzi scammers like Maddof and others like him !its enough to make you cry!

  2. Thanks for the link 10:36. Just so you know...some of those kind of girls find the man that is good in heart and soul.

    You are also correct on those ponzi schemes, I witnessed a friend lose a couple of hundred thousand by doing green furniture and the economy tanked. He was living in Florida (3 kids and wife) then and now he is living back in Canada living with his parents.

    Made my heart break....but we only make 37,000 a year, AND we do not live with our parents.

    Point I am making is that some strippers are good gal's who are willing to stay home with the kids and grow some food. And the weird part of the story is that we make out better than those who make more money than us regular folk.

  3. Share market will be up over 2% overnight now! Buy your shares now while you can and make some money like the pros.

  4. yes ,they will nearly be back to their index value of ten years ago.
    ignoring the fact that the dollar value is much lower now due to money printing.
    But you are right what an oportunity for proffesional long term suckers.

    Take the advice of these "pros" they know value when they see it!

  5. seen this coming ten years ago.
    like wellington at watterloo just sat and waited
    only the blind didnt see this and ww3 around the corner
    fuckin idiots
    but now the question is
    got gold beeches?
    colllapse tariffs war
    wake the f up
    history reapets nothing has chaged the dum want to lose thier money spend spend spend
    gold is money beeches
    oh yea ,i started out digging dicthes
    now move along

  6. ”While filing Bankruptcy can assist you in alleviating your dues and debts, it can also affect you more adversely than you can think of.

    Bankruptcy can have disturbing effects on personal and professional life for longer duration. It affects your credit rating and borrowing capacity in near future. Hence, declaring bankruptcy should be considered as last resort.

    Reasons for finding Bankruptcy Alternatives
    There are other alternatives available which can pull you out from such awkward positions. There are numerous reasons for people to avoid bankruptcy.

    1. People filing bankruptcy have to bear the loss of their assets. In most of the cases court used to sell those assets like house, plot or even car to clear off debts.

    2. When ever you file for bankruptcy, then control goes to the magistrate handling your case and your fate can be decided by him judging the information received by Official Receiver.

    3. Bankruptcy has a very devastating effect on your credit history for at least next 7 years. With such a poor credit score it becomes very difficult to get a loan or mortgage to start a fresh life.

    4. Declaring bankruptcy can ruin your career prospectus. There are certain careers which do not accept you if bankrupt. Even there are few restrictions on being director or owning business.

    5. Being bankrupt hampers your social life to much extent. It is quite embarrassing situation once your bankruptcy gets advertised in newspaper.

    Bankruptcy Alternatives
    In October 2005, the bankruptcy Abused Prevention and Consumer Protection Act was came in to force. So before you make any decision to find bankruptcy…”

  7. wasn't this Cramer's dog? LOLOL


Everyone is encouraged to participate with civilized comments.