Ambac CFO Calls it Quits
Bond insurer Ambac Financial Group (ABK) senior vice president and chief financial officer Sean Leonard resigned this week after the company warned it may file for bankruptcy. Until a replacement is named, his department heads will report to CEO David Wallis, Ambac said in a statement Tuesday. "Sean’s experience, intelligence and dedication have had a strong and positive impact on the Company," Wallis said. "We are fortunate to have had him as part of the executive team and he will be greatly missed.” Leonard's resignation -- effective immediately -- comes after Ambac warned in a regulatory filing that it may need to file for bankruptcy protection. In the Securities and Exchange Commission (SEC) filing, Ambac said the $164.7m it holds in cash, short-term investments and bonds is sufficient liquidity to last it until Q211, but acknowledged that it was not a guarantee and it might run out before then. Ambac posted net income of $2.2bn, or $7.58 per share, in Q309, compared with a net loss of $2.4bn in the year-ago quarter. Quarterly results were impacted by unrealized mark-to-market gains in the New York City-based financial services and insurance firm’s credit derivatives portfolio and gains from Q309 reinsurance cancellations. Write to Diana Golobay.