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UPDATE - Oakland, Calif. aims to sue muni bond insurers (at Reuters)

By Jim Christie SAN FRANCISCO, July 25 (Reuters) - Oakland, California's city attorney said on Friday he will file a lawsuit claiming municipal bond insurers duped the city into buying bond insurance despite risks the guarantors faced to their triple-A ratings from insuring subprime mortgage-related securities. Oakland will file its lawsuit against the insurers, including Ambac Financial Group Inc... [read full story]                    

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