Friday, February 15, 2008

Great interview with CEO of AMBAC in WSJ

Moishe found most interesting his comment, that the downgrades being contemplated are a result of repricing of risk under the most extreme conservative cases assuming losses (that haven't occurred yet) at crazy levels. Take it with a grain of salt but makes sense.

Being a pilot, going back to his days in the Marine Corps, Michael Callen knows how to navigate through dicey situations. Now, the interim chief executive of Ambac Financial Group Inc. will be putting his skills to a new test.

The 67-year-old Georgetown University professor and former banking executive is trying to help Ambac dodge further credit-ratings downgrades. Fitch Ratings, a unit of Fimalac SA of Paris, has cut the bond insurer's coveted triple-A rating to double-A.

Many people have a lot riding on whether Mr. Callen succeeds. Ordinary investors who hold municipal bonds insured by Ambac could see the ...

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