Here's the news on Friday that sent the stock plummeting (again):
Fremont General Corporation to Exit Sub-Prime Residential Real Estate
Fremont General Corporation, a nationwide real estate lender doing business primarily through its wholly-owned industrial bank, Fremont Investment & Loan ("FIL"), today announced that it intends to exit its sub-prime residential real estate lending operations.
And here's the leaked internal email (may or may not be legit - we'll see tomorrow) that hit the internets tonight (note - I have no FMT position):
From: Brian Daily
Sent: Sun 3/4/2007 4:22 AM
To: *Tampa 2 Office; *Tampa 1 Office; *ResRe Tampa 1 AE
Subject: Fremont ceasing doing business.
Teams,It is with great regret that I must inform you that Fremont Investment and Loan will cease funding loans and doing business. At 12:35 (pst) Saturday, Fremont General received notice from the FDIC that they are not permitting any more loans to be funded by Fremont. In short, our funding available was terminated by the Federal Home bank.
The suddenness of the change and the shift from our communication literally less then 24 hours previously simply perplexes me. However, this simply validates the volatility on our business.
None of us in Hawaii realized or appreciated the gravity of the situation we were facing. There are many questions that many of you have. There is a conference call that will be conducted on Monday that will answer many of these questions that you will have.Jerry Casanova will be able to communicate with you more specifics on Monday morning. Please show up for work to receive these instructions.
I will be leaving the meeting here in Hawaii early and attempting to return to the office sometime on Monday.In order to assist our clients with some instructions-