Subprime lender New Century files for bankruptcy, fires 3,200 people


Its fall epitomizes the collapse of the sub-prime lending business,
which made $1.3 trillion in higher-cost mortgages over the past two
years to shaky borrowers. In recent months, forced sales and outright
shutdowns of lenders have plagued the industry — woes that threaten to
depress the entire housing market.

were big, strong, gigantic — and arrogant too, cocky," said analyst
Matthew Howlett at the investment firm Fox-Pitt, Kelton.

Read the full story in the LA Times, click here.

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