Ambac Financial Group Inc. said yesterday in a letter that support for bond insurers through a Treasury-backed guarantee program could have "an exponentially positive impact for several critical sectors of the U.S. economy."

An effort to stabilize financial guarantors through the guarantee portion of the Treasury Department's $700 billion Troubled Asset Relief Program could help municipal issuers, banks with exposures to guarantors, individual investors with insured bonds, and others, Ambac president and chief executive officer David Wallis wrote.

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