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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

New Century NOT making another go of it
PostPosted: Mon Mar 12, 2007 1:03 pm Reply with quoteBack to top

WSJ:

New Century's Lenders to Cut Off Funding
By LINGLING WEI
March 12, 2007 8:10 a.m.

NEW YORK -- New Century Financial Corp. disclosed early Monday morning that all of its bank lenders had either cut off their short-term funding to the beleaguered home lender or notified the company of their intent to do so.

The move came after New Century received notices of default from eight of its lenders -- including Morgan Stanley, which extended the company an emergency financing package last week.

The disclosure is ominous. Like other independent mortgage lenders, the Irvine, Calif., company relies on short-term financing from Wall Street firms and big commercial banks to make home loans. Those lines of credit allow the lender to provide the funds borrowers use to pay for their homes. New Century then uses the money it gets from the sale of the mortgage in the secondary market to pay down the financing.

New Century said it has received notices of default from lenders including Bank of America Corp., Citigroup Inc., Credit Suisse Group, Goldman Sachs Group and Morgan Stanley. It also said some of those lenders are accelerating the company's obligation to buy back all outstanding mortgage loans financed under their respective funding agreements.

If all the company's lenders demand repurchases, the obligation could come to $8.4 billion, a burden the company said it can't meet. The result could be a forced liquidation of the loans and other assets.

"The Company and its subsidiaries do not have sufficient liquidity to satisfy their outstanding repurchase obligations under the Company's existing financing arrangements," New Century said in a filing with the Securities and Exchange Commission. "If the Company and its subsidiaries are not able to satisfy their repurchase obligations, one or more of the Company's lenders may seek to liquidate the mortgage loans or other assets financed under the applicable financing arrangement with the Company."

_________________
"Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan
"Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson
“Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912


Last edited by bdc63 on Mon Mar 12, 2007 8:38 pm; edited 1 time in total
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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: New Century NOT making another go of it
PostPosted: Mon Mar 12, 2007 1:36 pm Reply with quoteBack to top

NEW closed friday at $3.20 .... opening this morning 50% down to $1.65.

_________________
"Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan
"Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson
“Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912


Last edited by bdc63 on Mon Mar 12, 2007 1:38 pm; edited 1 time in total
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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: New Century NOT making another go of it
PostPosted: Mon Mar 12, 2007 1:38 pm Reply with quoteBack to top

trading halted at 9:37am, and "news of bankruptcy crossing the wire"

_________________
"Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan
"Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson
“Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
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bakersfieldbubble
Dyn-o-mite!


Joined: 25 Jan 2007
Posts: 488

Re: New Century NOT making another go of it
PostPosted: Mon Mar 12, 2007 3:05 pm Reply with quoteBack to top

Where is the salesman?

This is the same BS I have been seeing since late Novembers on the Brokers chat rooms. Company on the verge of fail and they send out the sales force to talk the company up, meanwhile the top brass are selling shares and running for higher ground. Everytime this same scenario played out, EVERY company went under. There must be a going bust lender manual they are all following.
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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: New Century NOT making another go of it
PostPosted: Mon Mar 12, 2007 5:04 pm Reply with quoteBack to top

NYSE has just confirmed that they are reviewing listing status of New Century and that is why trading has been halted.

_________________
"Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan
"Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson
“Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: New Century NOT making another go of it
PostPosted: Tue Mar 13, 2007 12:04 pm Reply with quoteBack to top

... and this morning, the SEC and CA Grand Jury want a piece of New Century:
(full story here) http://www.forbes.com/feeds/ap.....10662.html

In its regulatory filing early Tuesday, New Century said the U.S. Attorney's Office subpoenaed "certain documents" in its investigation into those accounting errors as well as into trading in the company's stock before the errors were disclosed to the public.

The SEC also requested documents, New Century said, and asked for a meeting with the company to discuss the events preceding the accounting errors.



Mozilo better be watching what is happening at NEW ... Grand Jury's don't look kindly on insider selling prior to surprize anouncements and accounting 'errors'...

_________________
"Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan
"Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson
“Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: New Century NOT making another go of it
PostPosted: Wed Mar 14, 2007 8:09 pm Reply with quoteBack to top

Barclays may be putting the final bankruptcy nail in New Century's coffin ... they are demanding that New Century take back $900M in defulting loans.

R.I.P.

_________________
"Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan
"Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson
“Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
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