Fallout from credit problems in the mortgage market continued to batter various companies across the globe this week.
Among the wounded ...
Accredited Home Lenders Holding , a struggling subprime mortgage lender, on Tuesday posted a $260.2 million quarterly loss and said it remained unsure that it would survive the fallout from a slumping U.S. housing market.
The loss for the first quarter ended March 31 was $10.29 per share, according to a regulatory filing. Accredited posted a profit of $35.8 million, or $1.61 per share, a year earlier. (Click here for more)
The bankrupt American Home Mortgage is attempting to seize as much as $27 million that employees set aside from their paychecks as retirement savings. If it is successful, the workers may never see the money again. Employees around the country say American Home wants to release retirement money from a trust fund which would put it in the hands of large creditors. (Click here for more)
Mortgage lender Impac Mortgage Holdings said it's cutting jobs and completely exiting the alt-A lending market.
Nearly all loans Impac originated before the market troubles began were alt-A mortgages. Alt-A mortgages are loans given to customers with minor credit problems or who are unable to fully document their income and assets as a traditional, prime borrower would. (Click here for more)
U.K. finance minister Alistair Darling, speaking after the U.K. stock market closed on Monday, said that if necessary the government and the Bank of England would guarantee all existing Northern Rock deposits during the current instability.
Shares in Northern Rock, Alliance & Leicester and other British banks jumped on Tuesday as investors were reassured by the government's pledge. Northern Rock shares, which had more than halved in value since Friday, rose 10% in early trading. Lines formed at branches of Northern Rock again early on Tuesday, but lines were significantly shorter than on Friday, Saturday and Monday. (Click here for more)
U.S. online brokerage E*Trade Financial on Monday warned that it expected full-year earnings per share to be sharply below its previous forecasts as it increases provisions for bad loans, and writes down the value of some mortgage linked securities. The brokerage's shares fell more than 8% in extended traded after the news. (Click here for more).
Bank of America , the second-largest U.S. bank, said on Monday recent volatility in capital and credit markets will have a "meaningful impact" on third-quarter results at its corporate and investment bank.
Speaking at a conference in San Francisco that the bank sponsored, Chief Financial Officer Joe Price said results are being hurt by "unprecedented dislocations" in the credit markets, as investors ascribe greater risk to a variety of loans and securities where the bank has exposure. (Click here for more)
U.S. foreclosure filings rose 36% in August from July and 115% from a year ago, hit by declines in once-hot housing markets such as California, Nevada and Florida, according to a report released Tuesday. (Click here for more)
But on a positive note ...
Beazer Homes USA said on Tuesday it has cut $60 million of overhead out of its business and expects to realize another $50 million in cost savings next year.
Beazer, the No. 7 U.S. home builder, has like nearly all of the other large U.S. home builders been focused on cutting costs and strengthening its balance sheet in order to navigate the rough times the U.S. housing market is seeing. (Click here for more)