PMI Group shares plummet following capital requirement misses

PMI Group Inc. shares dropped by up to 41 percent on August 22st, following an announcement that two of the units of this mortgage insurance company were forced to stop writing new business because they had fallen short of meeting their capital requirements. Just before this announcement was made, PMI had stated that both PMI Mortgage Insurance Co. (MIC) and PMI Insurance Co. had been placed under regulatory supervision by the Arizona Department of Insurance. Since then, PMI has also revealed that the MIC subsidiary, PMI Mortgage Assurance Co., was…

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