May 05, 2007
Not funny when it's your job. Not funny when millions of people you "helped" end up losing their house and going bankrupt. Not funny when billions of dollars are lost because of your greed and incompetence. And not funny when you're just the first of many to come.
Want some cheap real estate coming up? Head to Orange County - the home of the mortgage lender implosion and pink slips.
New Century Financial receives no bids for loan-making units and tells 2,000 workers today is their last day.
New Century Financial of Irvine, the largest subprime lender to file for bankruptcy protection, said it will lay off 2,000 of its remaining workers, including 500 in Orange County, effective today, after failing to find a buyer for its loan-making units.
The company, which has come to symbolize the rise and fall of lenders to higher risk borrowers, is facing its final days of existence, said Brad Morrice, New Century's chief executive. It will retain a skeleton crew of about 750 workers, mostly in Orange County, to wind things down.
During a conference call, Morrice told workers there were no bids for its retail or wholesale lending operations by the Wednesday deadline.
"This brings us to today, which is a day that I could never have imagined facing," Morrice said.
"We must terminate most of our remaining workforce, including virtually all origination personnel."
As recently as two months ago, New Century employed 7,200 people. Last year, it originated $60 billion in loans.