Mortgage fallout shakes up stocks

Sign Up for the undefined Newsletter

More bad news in the mortgage market had stocks swinging yesterday, with the Dow Jones industrial average up 1 percent and down 1 percent in the same day for the first time since 2003. Shares in American Home Mortgage Investment Corporation, which was the nation’s 10th-largest mortgage lender in the first half of the year, dropped 89 percent to $1.16. Some analysts said the company might have to seek bankruptcy. more [NYT]
And another Bear Stearns hedge fund has taken a hit from falling prices in the asset- and mortgage-backed securities markets, suspending withdrawals indefinitely after posting a loss in July. more [Post]