As we all wait with baited breath for New Century Financial, the nation's second-largest subprime mortgage lender, to Bite the Big One, does the following passage strike anyone else as quaintly ironic:
New Century has received about $975 million of financing from Morgan Stanley. Part of the money from the New York-based securities firm was used to pay Citigroup Inc. about $717 million on March 8, after Citigroup demanded repurchase of its loans, New Century said in today's filing.
That's from this Bloomberg news story
As subprime borrowers juggle their many debts, so does the now-failed lender who saw fit to dish out piles of money to them. The only difference, it seems, is the size of the debts the two groups are juggling.
What goes around ...
Labels: Banking, Debt, Mortgages