Mortgage company goes kersplat
Bob Morris @ Mar 3rd 2008 14:51 - Category: Credit crisis Tags: Thornburg Mortgage
Thornburg Mortgage Inc. lost more than half its market value after the home lender failed to meet $270 million of margin calls and a Citigroup Inc. analyst said bankruptcy is possible.
If a company can’t make a margin call, it means they have no available money and nothing to sell to try to raise the money. No one sane would enter into a mortgage deal with Thornburg now so any business they still had has evaporated.
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