Archive for October, 2007

As reported by Household – HSBC Watch and others, HSBC Holdings Plc’s Canadian unit became the first financial adviser in the country to be sued over investments in asset-backed commercial paper that were frozen following the U.S. subprime mortgage industry collapse.

Sales of existing homes plunged by a record amount in September while median home prices dropped by the largest amount in nearly a year, reflecting deepening problems in the troubled housing market.

Two weeks ago I had never heard of Saxon Mortgage. Now I have been notified that I am a valued customer and they will be the new servicer for my Novastar mortgage. Saxon Mortgage Services Inc., a unit of New York-based Morgan Stanley, will acquire the rights to do billing and collection on home loans from NovaStar, the Kansas City, Missouri-based mortgage company said in a statement today. The transaction doesn’t include any of NovaStar’s operations.

This is the worst year ever for layoffs in the U.S. financial-services industry—and there’s still more than two months to go, according to Steve Rosenbush at Business News. Layoffs seem to span all levels, from mortgage brokers to processors, all the way up to white collar fund managers. Layoffs include those making $35,000 a year, all the way up to those who enjoyed making $3 to $5 million a year.

On October 23rd Asia Times Online said:

For the third time since March, we are in the midst of a significant market selloff, a sharp and painful expansion of what the markets call “risk aversion”.

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