Alt-A Bleeding & New Century Goes BK
Today, New Century Financial, the 2nd largest subprime lender, became the biggest subprime mortgage company to go bankrupt in the past year.
The largest creditors included Wall Street firms that financed New Century's lending operations, including Morgan Stanley, Goldman Sachs Group Inc. and Credit Suisse Group.
No amounts were listed in the filing, but the Nattering One estimates $18 Billion across 16 credit lines carried by 9 major players for an average exposure of $1.5 to 2 B.
M&T Bank (MTB) lowered its Q1 guidance citing weakness in the secondary market for Alt-A loans.
MTB stock fell 8% after saying low bids for Alt-A mortgages it planned to sell will cut earnings by $7 million.
M&T also said rising default rates will require it to buy back some Alt-A loans it previously sold.
Shares of IndyMac fell as much as 4% and Impac fell as much as 5.6%. IndyMac's shares have lost almost a third of their value this year and Impac is down by 45%. M&T Bank has fallen 13% in 2007.
Regional Banks (-1.9%), Diversified Banks (-1.3%), Thrifts & Mortgage (-1.3%), and Consumer Finance (-1.3%).
The largest creditors included Wall Street firms that financed New Century's lending operations, including Morgan Stanley, Goldman Sachs Group Inc. and Credit Suisse Group.
No amounts were listed in the filing, but the Nattering One estimates $18 Billion across 16 credit lines carried by 9 major players for an average exposure of $1.5 to 2 B.
M&T Bank (MTB) lowered its Q1 guidance citing weakness in the secondary market for Alt-A loans.
MTB stock fell 8% after saying low bids for Alt-A mortgages it planned to sell will cut earnings by $7 million.
M&T also said rising default rates will require it to buy back some Alt-A loans it previously sold.
Shares of IndyMac fell as much as 4% and Impac fell as much as 5.6%. IndyMac's shares have lost almost a third of their value this year and Impac is down by 45%. M&T Bank has fallen 13% in 2007.
Regional Banks (-1.9%), Diversified Banks (-1.3%), Thrifts & Mortgage (-1.3%), and Consumer Finance (-1.3%).
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