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Eric R. Dinallo   Superintendent of Insurance  25 Beaver Street  New York, N.Y. 10004

ISSUED 03/05/2008 FOR IMMEDIATE RELEASE

 

STATEMENT BY GOVERNOR ELIOT SPITZER ON AMBAC'S PLAN TO RAISE CAPITAL

It is welcome news that Ambac and the financial institutions that are working with the company are raising the necessary capital to preserve its credit rating for the benefit of all of its policyholders.

At the State level, our goal has been and continues to be bringing stability to the bond insurers to protect the policyholders, including municipal bond issuers, investors and the banks. This critical capital injection will help Ambac maintain its current credit ratings.

Combined with the prior affirmation of MBIA’s credit ratings, eliminating concerns about Ambac’s ratings should have broad benefits for the financial markets and provide stability for the municipal bond market.

I thank Wisconsin Insurance Commissioner Sean Dilweg for his work. I thank New York Insurance Superintendent Eric Dinallo and his staff for their work assisting Ambac and the financial institutions on this deal. New York State will continue its efforts to assist other bond insurers.

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