Ambac Restructure Costs U.S. Central $274 Million
Monoline insurer Ambac's weakened condition resulted in an additional $274 million worth of losses for U.S. Central FCU. The corporate posted its 2009 audited financial statements on its website today. (www.uscentral.coop)
U.S. Central had previously announced in a March 1 release it had recorded $142 million in fourth quarter 2009 losses as a result of Ambac's payment reliance reduction to 80%. However, actions by Wisconsin's insurance commissioner March 25 dropped Ambac's reliance for claim payments down to only 25%.
Audited statements report a $2 billion net loss for 2009.In 2008, U.S. Central lost $4.8 billion.