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The
agreement settles claims related to residential mortgage-backed
securities (RMBS) transactions insured by Ambac.
The settlement will have a positive impact on Ambac's
fourth-quarter operating results and its claims paying
resources, Chief Executive Nader Tavakoli said in a statement.
The settlement comes two weeks after Reuters exclusively
reported that three of Ambac's top ten shareholders were calling
on Tavakoli to step down, claiming that he was slow to settle $4
billion in insurance claims and lawsuits against Countrywide
Home Loans Inc, Bank of America Corp and JPMorgan.
Ambac sued Bank of America Corp in 2014 to recoup hundreds of
millions of dollars of losses from insuring securities backed at
least in part by risky mortgages from the bank's Countrywide
Home Loans unit.
Ambac has publicly resisted calls to speed up its payment of
claims, citing concerns that it wouldn't be able to meet its
liabilities that extend out to 2054.
(Reporting By Sudarshan Varadhan in Bengaluru; Editing by
Saumyadeb Chakrabarty and Shounak Dasgupta)
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