MGIC Investment and Radian Group may fail to merge following losses in a jointly owned subprime-mortgage venture, reports The Wall Street Journal. Each company owns 46% of Credit-Based Asset Servicing & Securitization, or C-Bass, which has suffered losses recently following disruptions in the market. MGIC had agreed to purchase Radian in February for $4.9 billion but said it doesn’t have to complete the deal following troubles at C-Bass. Radian disagreed with MGIC’s view of the situation. “We remain committed to the transaction, and look forward to completing it as promptly as possible,” it stated.
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