Ambac Financial Group Inc. yesterday received regulatory approval from Wisconsin for its bond insurer subsidiary Ambac Assurance Corp. to provide up to $1 billion in support to Ambac's financial services unit through asset purchases and secured loans.

The approval allows the company to proceed with a more orderly wind-down of its financial services unit, which wrote guaranteed investment contracts backed by the bond insurer. Ambac plans to reduce its investment agreement liabilities 50% over the next five years, from their level of $6.7 billion as June 30.

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