A Summary Of Yesterday's Subprime Action

From the LA Times:

• Mortgage insurers MGIC Investment Corp. and Radian Group Inc. said they might write off their combined $1.03-billion stake in a venture that invests in sub-prime mortgages on which payments were past due.

• American Home Mortgage Investment Corp., which lends to people close to the sub-prime category, postponed payment of its dividend, took "major" write-downs and said its lenders were demanding that it put up more cash. Its stock plunged 39%.

• Insurer CNA Financial Corp. wrote down $20 million in sub-prime-backed securities.

• A German bank with U.S. sub-prime exposure cut its profit forecast and replaced its chief executive.