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Monoline insurer Ambac’s forced restructuring could cost corporate credit unions as much as $400 million in new OTTIs.

U.S. Central FCU said action last month by the Wisconsin insurance commissioner to take control of Ambac’s residential mortgage-backed securities guarantees caused it to lose an additional $274 million in 2009. The new OTTI is the result of a reduction in Ambac’s ability to pay on guaranteed bonds from 80% to 25%. U.S. Central had the highest Ambac exposure among corporates, worth a par value of $1.244 billion. It had previously recorded $142 million in Ambac-related OTTIs before the restructuring.

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