More credit problems surfaced in the financial sector on Tuesday, battering stocks and fueling worries that things will get worse before they get better.
"The market is still jittery," said Stephen Porpora, managing floor broker with William O'Neil. "Everybody's looking for the next shoe to drop in this subprime problem."
Thornburg Mortgage was among the hardest hit. Its shares plunged 46% amid concerns about liquidity. After the market closed, the residential mortgage lender said it was delaying payment of its second quarter dividend by a month, citing "significant disruptions" in the mortgage market.
Thornburg's president told CNBC that the mortgage lender is having problems raising financing but has "no intention" of filing for Chapter 11 protection. "We've been able to meet all of our obligations," Goldstone said. "We've been rolling over and financing our portfolio. It's been an amazing struggle to get that done."