Ambac Assurance Corp. Settles RMBS Related Litigation Against JP Morgan Chase

(RTTNews) - Ambac Financial Group, Inc. (AMBC) Tuesday said that its subsidiary Ambac Assurance Corporation or AAC and the Segregated Account of AAC have settled their RMBS-related disputes and litigation against JP Morgan Chase & Co. and certain of its affiliates.

As per the settlement, JP Morgan will pay AAC $995 million in cash in return for releases of all of AAC's claims against JP Morgan arising from certain RMBS transactions insured by AAC. AAC has also agreed to withdraw its objections to JP Morgan's global RMBS settlement with RMBS trustees.

Nader Tavakoli, Ambac's President and Chief Executive Officer, said, "This settlement will have a positive impact on our fourth quarter 2015 operating results, as well as our claims paying resources."