NEW YORK (

TheStreet

) - Shares of

PMI Group

( PMI) plunged another 38 Friday to close at 26 cents, following

Thursday's 53% drubbing

.

The further decline followed downgrades by Standard and Poor's of PMI's counterparty credit and senior debt grades one junk notch lower, to "CC" from "CCC-," and for the company's subsidiary PMI Mortgage Insurance Co., to "CCC-" from "B-."

PMI Group's mortgage insurance competitors

Radian

(RDN) - Get Report

and

MGIC

(MTG) - Get Report

also saw further declines, with Radian's shares down 5% to $2.76 and MGIC down 2% to close at $3.17.

Shares of

American International Group

(AIG) - Get Report

declined 5% after CEO Robert Benmosche said during a conference call that the company saw mortgage insurance unit United Guaranty Corp. "as a keeper."

While the broad indexes were mixed, bank stocks were still getting hammered, with

Bank of America

(BAC) - Get Report

leading the group down, with shares closing 8% lower at $8.15. Earlier in the session, the stock hit a new 52-week low of $8.03 as it faced

multiple downgrades

.

The

KBW Bank Index

(I:BKX)

declined over 2% to 41.42.

Shares of

Regions Financial

(RF) - Get Report

dropped 5% to close at $5.09.

Citigroup

(C) - Get Report

declined 4% to $33.46, with the shares now off 26% since undergoing a 1-for-10 reverse split on May 6.

Large banks seeing 3% share declines during afternoon trading included

Comerica

(CMA) - Get Report

, which closed at $29.12;

First Niagara Financial Group

(FNFG)

, closing at $11.06;

KeyCorp

(KEY) - Get Report

, at $7.25; and

M&T Bank

(MTB) - Get Report

, which closed at $78.62.

Morgan Stanley

(MS) - Get Report

was one of the few winners among large financial services names in afternoon trading with shares up 2% to close at $20.03, following the recent news that CEO James Gorman had purchased 100,000 company shares, at an average price of $20.62, increasing his holdings to roughly 980,000 shares.

--

Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here:

Philip van Doorn

.

To follow the writer on Twitter, go to

http://twitter.com/PhilipvanDoorn

.

To submit a news tip, send an email to:

tips@thestreet.com

.

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--

Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here:

Philip van Doorn

.

To follow the writer on Twitter, go to

http://twitter.com/PhilipvanDoorn

.

To submit a news tip, send an email to:

tips@thestreet.com

.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.