Lender Woes Go Beyond Subprime
Few are feeling the hangover from housing's heyday as much as subprime lenders that cater to risky borrowers. The stocks of such players as New Century Financial Corp. (NEW) and NovaStar (NFI) have been slashed, 50% and 63% respectively, since February (see BusinessWeek.com, 2/21/07, "Fears Reignite for Subprime Lenders"). But even diversified lenders and mainstream banks have headaches. Countrywide Financial (CFC) is off 13%, Washington Mutual (WM) has slipped 6%, and Europe's HSBC (HBC) is down 5% since it revealed that its 2006 charges for bad debts would exceed forecasts by $1.76 billion.
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