Article Image
News Link • Economy - Economics USA

Why did blue-chip Goldman take a walk on subprime's wild side?

• McClatchy News
A glimpse inside New Century's operations sheds light on how one of Wall Street's proudest and most prestigious firms helped create a market for junk mortgages, contributing to the economic morass that's cost millions of Americans their jobs and their homes.

Perhaps no mortgage lender was more emblematic of the go-go atmosphere in the sprouting industry that was seizing an outsize share of the home loan market.

Traversing the country in private jets and zipping around Southern California in Mercedes Benzes, Porsches and even a Lamborghini, New Century executives reveled as the firm's annual residential mortgage sales rocketed from $357 million in 1996 to nearly $60 billion a decade later.

To be a subprime lender at the industry's height was to join in a dash for cash, and New Century was an Olympic-caliber sprinter.

Join us on our Social Networks:


Share this page with your friends on your favorite social network: