Ambac Financial Group today dropped plans to split the bond insurer into two companies and instead announced it would raise $1.5 billion in new capital, eliminate its dividend and stop insuring risky debt for six months,
The New York-based firm's move was not greeted enthusiastically by rating agencies and investors.
Ambac also said it will discontinue underwriting certain aspects of risky debt business, including collateralized debt obligations and mortgage-backed securities.
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