NEW YORK (Reuters) - Ambac Financial Group Inc ABK.N, a struggling bond insurer, said on Tuesday it has “limited” exposure to Bear Stearns Cos BSC.N, and no material exposure in its financial guaranty and financial services businesses.
In those businesses, Ambac has exposure “through special purpose vehicles and, in its capacity as, a servicer, a (credit default swap) counterparty, a remarketing agent or an interest rate swap/cap provider.”
New York-based Ambac believes its exposures are “sufficiently structured” to protect it from any material loss. It also expects JPMorgan Chase & Co (JPM.N) to assume liabilities of Bear under contracts in which the latter “substantially collateralized” its exposure to Ambac under interest rate and cross-currency swap agreements.
JPMorgan agreed on Sunday to buy Bear for about $2 per share.
Reporting by Jonathan Stempel; Editing by Derek Caney