Friday's Financial Winners & Losers
Updated from 2:50 p.m. EDT
American Home Mortgage's (AHM) plummet continued to drag down the financial sector Friday, as other lenders bore the brunt of a residual share-price beating.
AHM, based in Melville, N.Y., announced last night that it's laying off 6,000 workers, or roughly 90% of its workforce, as it shuts down most of its operations due to deteriorating housing-market conditions. CEO Michael Strauss said market conditions have left the company with "no realistic alternative." Shares gave up 52.1% to 69 cents in a flurry of trading Thursday.
Several other lenders charged downhill on AHM's heels, including Impac Mortgage (IMH), which slid 26.2% to $1.66; IndyMac Bancorp (IMB), off 6.6% to $19.66; Fremont General (FMT), down 16.5% to $4.49; and CIT (CIT), which lost 4.9% in heavy trading.Accredited Home Lenders (LEND) bucked the trend, as the subprime lender made a partial recovery from Thursday's precipitous fall. In the company's year-end filing, it warned investors about the shaky state of its financial health. Shares closed up 31.3% to 6.97. Bear Stearns (BSC) also contributed to the dark mood after Standard & Poor's lowered its outlook on the broker's credit rating to negative from stable, citing Bear's recent hedge fund troubles. Shares were losing as much as 7% this morning, before a retaliatory press release provided some relief. Shares were off 6.3% at $108.35.
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