It's now possible that MGIC and RADIAN may have to claim yet another loss on their books from Litton Loan.
With a sale price of less than $500 million dollars. Litton Loan may be exposed to litigation liability of well over $800 million. These are only estimates, however, with the number of Class actions, and the explosion of individual litigation against C-BASS and LITTON LOAN reserves will most likely be insufficient to cover even the existing litigation exposure.
MGIC seriously underestimated, or intentionally neglected to provide oversight of Litton Loan's "Run Away" train wreck of litigation. RADIAN who's oversight of C-BASS and LITTON LOAN also was negligent of judicious oversight. Some like me are speculating that one of the many reasons for the MGIC and RADIAN split is because of C-BASS and LITTON LOAN. This was no secret to the press reports. However, in their financial desperation for added cash, the forced sale of LITTON LOAN may net another Loss for MGIC and RADIAN.
I'm still thinking investors and Stockholders should be looking for the Rolls Royce!! And, maybe the Names of the Lloyd's policy LITTON LOAN was "Force Placing". I'm betting they're tied in some way.
I'm betting the corporate decision by MGIC to buy back a million of its own shares at $27 now looks pretty dumb!
Or was it planned?