Why are the banks the ones in trouble when higher risk loans are insured via PMI?

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If so many banks are in trouble because of bad loans, then why don’t we hear about Insurance companies in trouble for paying claims? Private Mortgage Insurance is required on mortgages with less than 20% down. I know the 80/20 tricks some used, but surely it’s more common for low down loans to carry PMI than it is to use the 2nd…. in which case: What’s up with the banks crying foul when PMI should be paying the claims?

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