The weekend news – all bad – from PMI raises an array of questions, not the least how a state insurance regulator could step in as PMI says it has without issuing a formal statement in a timely fashion or otherwise acting in an orderly fashion.  This will, we think, affect the ongoing Treasury view of insurance, especially resolution, in the pending systemic assessment of sectors in the insurance industry.  However, as far as the GSEs go, PMI-related losses won’t, we think, do much damage in the near term.

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