NEW YORK ( TheStreet) -- Bond insurer Ambac Financial Group (ABK), whose shares are trading for less than $1, moved closer to bankruptcy as an insurance regulator took control of $35 billion of its main subsidiary's liabilities.The Wisconsin Office of the Commissioner of Insurance (OCI), which regulates the subsidiary, filed a petition for what's called rehabilitation with a Wisconsin County Circuit Court yesterday, meaning it wants to take control of the insurer's operations. It demanded the segregation of accounts between parent company Ambac Financial and Ambac Assurance Corp., the subsidiary, be established to provide a "durable solution for all policyholders."
Ambac Is Pushed Closer to Bankruptcy
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