AMBAC, MBIA lose critical AAA ratings

AMBAC and MBIA the two largest bond insurers have lost their triple-A rating with Standard & Poors which will make it extremely difficult for them to raise capital and generate new business going forward.  We've covered how tenuous these bond insurers are in the past, and this downgrade puts them in a world of hurt. From Market Watch on the bond insurer downgrade: Standard & Poor's Rating Services said on Thursday that it downgraded the bond insurance units of Ambac to AA from AAA. The insurers will generate less new business, have less financial flexibility and capital levels will be pressured by continued deterioration in the U.S. market for residential mortgage-backed securities and related collateralized debt obligations, S&P explained. The AA rat