Tuesday, February 05, 2008

S&P cuts Fremont General Rating

by Bill McBride on 2/05/2008 06:30:00 PM

From MarketWatch: S&P cuts Fremont General to CCC+; warns on liquidity (hat tip Carlomagno)

Standard & Poor's downgraded Fremont General to CCC+ from B- late Tuesday and warned that the Californian lender may not be able to meet its debt obligations. "Liquidity at the holding company has deteriorated substantially," S&P credit analyst Adom Rosengarten said in a statement. Liquidity remains strong at the company's banking business.
Here is a memo that was sent to me in Feb, 2007 when many people first started realizing there really was a mortgage problem. Of course, back then, many people mistakenly thought it was just a "subprime problem".

A couple of weeks after sending out that memo, Fremont announced they were postponing the release of results. And a couple of weeks later, the FDIC issued a Cease and Desist Order.

Ahhh, memories.