Radian Bidding for FGIC?

Radian Group Inc., Philadelphia, a major player in mortgage insurance, is said to be one of a handful of bidders that is interested in Financial Guaranty Insurance Co., a bond insurer owned by General Electric.Radian's interest in FGIC was first reported in the New York Post. FGIC is also an insurer of asset-backed deals, which includes subprime residential mortgages. GE declined to comment on the matter, as did Radian. Radian currently has two affiliates involved in bond insurance, Radian Asset Assurance, and Radian Reinsurance. Radian is rated double-A, FGIC Triple-A. According to National Mortgage News, Radian is the fifth largest mortgage insurer in the United States. A former GE official told MortgageWire that FGIC has dabbled in the mortgage business somewhat by "buying some mortgage bonds, and subordinated pieces (of securities)." He said FGIC, "never made a lot of money." Still, according to combined press reports, the unit could fetch between $2 billion and $2.5 billion.