Video of interview with Wisconsin State Insurance Commissioner Sean Dilweg by Bloomberg News
Subprime mortgage-related contracts were seized from Ambac Financial Group Inc.
Wisconsin State Insurance Commissioner Sean Dilweg told Bloomberg News that a rehabilitation order was issued against the bond insurer. The move enables the state to ensure an orderly runoff of liabilities.
"A lot of the exposures on the residential mortgage-backed securities are going out the door right now. As those securities are defaulting, the insurers are having to pay a hundred cents on the dollar," Dilweg said, adding that the move "will bring stability to the existing policy holders in the muni book and the commercial ABS book."
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