Paragon denies it will run down business

Keefe, Bruyette & Woods (KBW), an investment bank, issued a report today saying the business was at risk of not being able to secure more funding; forcing it to sell or wind down its business. KBW says the firm funds new mortgage lending, around 10% of its business, though investment-bank syndicated borrowing before securitising. However, current problems in world credit markets have seen banks nervous to lend to each other. This means Paragon may struggle to secure funding at a favourable rate when its current facility expires in Q2 2008. KBW says it will be left with the options to...