Tuesday, March 13, 2007

New Century of Irony

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 ...

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— Posted by Michael @ 3:12 PM


I find it interesting that everyone focuses on New Century as being a "sub-prime" lender. My mortgage is with them (unfortunately) but I have a FICO of 790-815 depending on which company you ask. Does anyone know what will happen to those of us who do pay on time and want to keep our houses when they go under?

Anonymous Anonymous
, at 4:20 PM, March 20, 2007  

The expression is "bated breath" not "baited breath". It is short for abated, i.e. attenuated.

Anonymous Anonymous
, at 11:51 PM, April 09, 2007  
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