The office of the Wisconsin insurance commissioner ordered troubled bond guarantor Ambac Assurance Corp. to deposit the more toxic holdings of its insured portfolio into a newly-created account that the office will administer.

Ambac’s municipal bond portfolio was valued at $230 billion last September, according to third-quarter financial statements. The decision to separate that portfolio from riskier holdings is intended to protect policyholders from the rapid outflow of cash owed to holders of the deteriorating quality of residential mortgage-backed securities, according to Sean Dilweg, the Wisconsin commissioner.

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