Monday, Mar 05, 2007
New Century Financial Stock Drops to 70%
Bloomberg: New Century Leads Drop in Shares of Mortgage Lenders
Subprime lenders stock hit the floor. Analysts say the fallout could hit prime lending and connected institutions. Prime lenders are safer from fallout - only IF they had good underwriting practices in place. Now that's a big IF!
Posted by nearly30 @ 08:14 PM (172 views) Add Comment
7 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. nearly30 said...
Interestingly - how would our institutions fair considering the more than lax lending practices that have gone on over the last 5 years???
Oh dear me!!!!
2. nearly30 said...
Oh here's my answer:
"Spokesmen for London-based Barclays, Zurich-based Credit Suisse and UBS, Frankfurt-based Deutsche Bank, and New York-based Citigroup and Goldman declined to comment. Spokesmen for Bank of America and Bear Stearns didn't return calls."
3. daft boy said...
Great posts nearly30....put a big smile on my face. Its been a great day for the bears today all in all.
4. dohousescrashinthewoods said...
Slight correction to the headline there, it didn't "drop to 70%" (i.e. 30%) it "dropped over 70%".
A couple of the others lost around 30% and a further company lost 45%.
These are very big numbers. Speaking of which, I heard 10% of US sub-prime is delinquent, which is another big number.
What do houses do in the woods of a downturn..? =)
5. nearly30 said...
Yes - the 70% was revised after closing - 3rd update now - now about 68.8%
Still a pretty interesting figures - getting everyone spooked on Bloomberg Channel - great TV!!
Must see viewing tomorrow no doubt more talk of barkruptcy for New Century - will wait in anticipation and see if our market reacts.
Happy days - for some!! :)
6. nearly30 said...
Last bit of sentiment before i go to bed:
"Is there a big disaster looming in the mortgage market -- that's clearly the concern right now,'' said Dan Veru, who helps manage $2.8 billion at Palisade Capital Management in Fort Lee, New Jersey. ``It's whether it can spread into the prime lenders and are we going into a down credit cycle.''
7. inbreda said...
Hmmm, yes, let me ponder that question for a second Mr Veru.
Are we going into a down credit cycle...
Hmmm...
You mean 'is the market f******d?
Hmm.....
Yes.