Whoops? Did the shorts forget about this bit of news when they sold the stock off today?
Ambac Financial Group Inc. Announces Regulatory Approval for Connie Lee Capital Contribution
Tuesday September 2, 4:41 pm ET
Douglas Renfield-Miller Named Chief Executive Officer and Judy Slotkin Hired as Chief Risk Officer of Connie Lee
NEW YORK--(BUSINESS WIRE)--Ambac Financial Group, Inc. (NYSE: ABK - News) Ambac Assurance Corporation (Ambac Assurance) today announced that it has received regulatory approval from the Commissioner of Insurance of the State of Wisconsin to capitalize and reactivate Connie Lee Insurance Company (“Connie Lee”), its financial guarantee subsidiary. Connie Lee will conduct business under a new name and will focus on the U.S. municipal and global public purpose financing markets. Ambac Assurance will inject $850 million into Connie Lee which will operate as a separate corporate and legal entity within Ambac Financial Group, Inc. (Ambac). Ambac is seeking to obtain stand-alone triple-A ratings for Connie Lee, and has worked extensively with Moody’s and Standard and Poor’s towards that goal. Connie Lee expects to write new insurance policies no later than the fourth quarter of 2008.
ABK is trading up over 10% in the after-hours to 8.10. Remember Thursday's post?
Those that thought that Ambac's Connie Lee municipal insurance was a long shot, should remember that three weeks ago, ABK said that Connie Lee could be up and running by October 1st. With what happened to MBI today, market bears that were dismissive of Connie Lee, will now have to seriously consider it. And with more deals in the whisper pipeline, the story on the monolines is getting much better! And for the shorts, it's getting much worse!