When PMI runs out of money to pay claims there will be plenty of questions asked to a lot of people. The regulators in particular will be asked on what basis they allowed PMI to raid the opco to collateralize the LOC at the holdco level? Did the regulators understand what condition the opco was really in, or did they rely on analysis provided by the company themselves?
That was a weird 8-k regarding the credit facility, sounds like a technicality, cant figure out why they felt it was material.
I agree the SEC going after Goldman is a very public rebuke of not just the system but also a warning shot across the bow of cheats. PMI should be very much aware that short sellers of their stock are all over their reserving methodology vs TGIC and will be contacting the AZ Dept of Insurance as well as the SEC if there is outlandish behaviour to protect our short interests. I can tell you I certainly will be doing that if they pull shenanigans, I might just need stryke or paid to show it to me as they have a unique tendency to see it in black and white.