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Paul Jackson at Housing Wire has some more analysis of this situation:
Apr 29 11:10 am
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All Comments by VacantHomes »Ambac's Earnings: You Can't Make This Stuff Up [View article]
www.housingwire.com/20.../
Basically, lots of fraud. Ambac got ripped off by Bear Stears and some other investment banks, as well as the credit rating agencies.