JPMorgan Chase Reduces Passive Stake in Ambac Financial Group to Less Than 1 Percent

NEW YORK (AP) -- JPMorgan Chase & Co. on Wednesday reported slashing its stake in troubled bond insurer Ambac Financial Group Inc. to less than 1 percent, in a filing with the Securities and Exchange Commission.

JPMorgan now owns about 1.4 million shares, or a 0.4 percent stake in the New York-based company. Previously, JPMorgan reported owning 7.8 million Ambac shares, representing a 7.7 percent stake.

JPMorgan reported its holdings in an amended Schedule 13G filing, which indicates the investment is passive, and that the shares weren't acquired to change or influence control of the company.

Ambac has been forced as of late to increase its capital base to cover the likelihood of higher default claims on mortgage-backed bonds.

Ambac shares tumbled 38 cents, or 6.3 percent, to close at $5.65, but added 1 cent to $5.66 in aftermarket trading. JPMorgan shares fell 56 cents to $44.30 and rose 10 cents to $44.40 after hours.