Professor Elam

Ambac is a company that used to insure various mortgages and other financial instruments. This promise proved to be as illusory as the FDIC insurance for bank deposits, both groups are now bust. 

The Ambac CFO has resigned as the stock sinks below one dollar. The idea of financial 'insurance' is dying a hard death, no one seems to believe that all the possible disasters, if in fact they just begin to occur, cannot be insured, they can't. Insurance assumes that some but not all disasters happen.