Ambac Assurance Settles RMBS Litigation Against JP Morgan for $995M

Ambac Financial Group, Inc.

("Ambac"), a holding company whose subsidiaries, including Ambac Assurance Corporation ("AAC"), provide financial guarantees and other financial services, today announced that AAC and the Segregated Account of AAC have settled their RMBS-related disputes and litigation against JP Morgan Chase & Co.

and certain of its affiliates (collectively "JP Morgan"). Pursuant to the settlement, JP Morgan will pay AAC $995 million in cash in return for releases of all of AAC's claims against JP Morgan arising from certain RMBS transactions insured by AAC.  AAC has also agreed to withdraw its objections to JP Morgan's global RMBS settlement with RMBS trustees. Commenting on today's announcement, Nader Tavakoli, Ambac's President and Chief Executive Officer, said, "We are delighted to bring our RMBS-related litigation against JP Morgan to a successful conclusion.  Today's announcement validates our resolve and reinforces our confidence in our remaining RMBS-related cases.  This settlement will have a positive impact on our fourth quarter 2015 operating results, as well as our claims paying resources.  I want to thank our very capable legal and RMBS teams for their hard work and dedication in achieving