The fate of a planned merger of mortgage insurers MGIC Investment Corp. and The Radian Group Inc. may be settled in court, as both companies try to assess their losses in a subsidiary, C-BASS LLC, which is invested heavily in subprime mortgages. At the end of July, both companies warned they could lose their entire $1 billion investment in Credit-Based Asset Servicing and Securitization LLC, or C-BASS, a limited liability company jointly owned by MGIC, Radian and the management of C-BASS. At the time, C-BASS said it was looking for cash from investors and struggling to meet $260 million in margin calls. On Aug. 7, MGIC announced that because of the potential losses at C-BASS, it had made a preliminary determination that it was not obligated to complete the merger. MGIC said a final decisi...
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