AMBAC (abk) CEO said it may take six months to restore confidence in the company, but that there is no possibility of failure to pay claims as it has resources to pay $16.5 billion in claims. He also notes that the terms of the bank rescue plan were not acceptable, but shareholders are responsive to the new deal. Ambac, the world’s second-largest bond insurer, has lost 92% of its market value in the past yeardue to losses on mortgage-linked securities. Ambac shares fell 15% yesterday.

Carlyle Group’s mortgage-bond fund, Carlyle Capital Corp, was suspended from Amsterdam trading Friday after it failed to repay lenders, who were then forced to sell assets held as collateral. The stock closed down Thursday almost 60% at $5.00 on Euronext Amsterdam. The fund expects more margin calls, which may deplete capital. Bear Stearns analyst Keith Baird said the pool may be liquidated and the stock left worthless.

Dow Jones Industrial Average [[^dji]] falls below 12,000 for the first time since January.

Posted in Categories: Stocks.

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