Ambac Slumps As Company May Seek Bankruptcy Protection, Enters "Rehabilitation" Of Segregated Account

"Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) announced today that, at the direction of the Office of the Commissioner of Insurance of the State of Wisconsin (“OCI”), Ambac Assurance Corporation (“AAC”), Ambac’s principal operating subsidiary, has established a segregated account for certain of AAC’s liabilities, primarily policies related to credit derivatives, residential mortgage-backed securities (“RMBS”) and other structured finance transactions. "