Ambac to Suspend New Structured Biz

Ambac Financial Group Inc., New York, plans to suspend all new structured finance business for six months and reduce its quarterly dividend from 7 cents per share to 1 cent per share to offset problematic mortgage-related exposures. The company plans to "discontinue writing business in a number of sectors in the global structured finance markets where the risk dynamics are not aligned with our vision of the future of Ambac," according to a written statement released by chairman and chief executive officer Michael Callen. He said the company remains "optimistic" about its municipal business, but will be selective about structured finance and international business.