Big Board Boots New Century

The Big Board booted New Century (NEW Quote).

Shares of the Irvine, Calif., subprime lender were suspended from trading on the New York Stock Exchange Tuesday. The NYSE says the firm, which has been cut off by its lenders and is under investigation by securities regulators and government prosecutors, will have to move its shares to the Pink Sheets.

New Century shares last traded at $1.66 after having lost more than 80% of their value in just over a week. The breakneck selloff came after New Century said it was in default on its deals with lenders and being investigated for its accounting. The NYSE had suspended trading Monday as it considered whether New Century would keep its listing.

This week, the company revealed that lenders including Bank of America (BAC Quote) and Goldman Sachs(GS Quote) have cut off its access to credit. Meanwhile, big banks that bought mortgage securities from New Century are seeking to make the firm buy them back. New Century says it doesn't have the money.

New Century and its subsidiaries do not "have sufficient liquidity to satisfy their outstanding repurchase obligations under the company's existing financing arrangements," the company said in a release about the trading suspension.

In another oops moment, New Century said Tuesday it had "incorrectly stated" the amount that it owed on mortgage repurchase obligations to Credit Suisse First Boston Mortgage Capital, a subsidiary of Credit Suisse(CS Quote). New Century owes the firm $1.4 billion instead of $900 million, it says.