Bloomberg News

Ambac's Chief Risk Officer McKinnon Leaves Company (Update2)

February 13, 2008

Ambac Financial Group Inc. (ABKFQ:US), the bond insurer that posted losses of $5.2 billion related to mortgage- linked securities last quarter, said its chief risk officer resigned.

William McKinnon left on Feb. 8, the New York-based company said today in a regulatory filing. McKinnon had been with Ambac, the world's second-largest bond insurer, since at least 1989, according to Bloomberg data.

McKinnon was in charge of risk while Ambac expanded beyond insuring municipal debt to guaranteeing collateralized debt obligations and subprime mortgage-related securities. Ambac had its first-ever and biggest losses (ABK:US) in the third and fourth quarters as the value of those securities tumbled.

McKinnon was one of four executive officers to be awarded a bonus for 2007, according to a company regulatory filing last week. McKinnon received an $800,000 bonus, $425,000 in restricted stock and options to buy 32,500 additional shares at $11.13 each.

Ambac shares (ABK:US) plunged 71 percent last year. The stock rose 47 cents to $9.37 today in New York Stock Exchange composite trading.

To contact the reporter on this story: Romaine Bostick in Washington at rbostick@bloomberg.net.

To contact the editor responsible for this story: Emma Moody at emoody@bloomberg.net


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