The sub-prime mortgage "black hole" is turning out to be deeper than investment banks had thought, one of the US's largest private equity houses warned yesterday as the escalating crisis claimed more Wall Street victims, reports The Guardian.
But Hamilton “Tony” James, chief operating officer of Blackstone, which owns United Biscuits and Hilton Hotels, said there may now be some value to be found in the bombed-out mortgage sector. His prognosis came as shares in Nasdaq-listed Etrade lost half their value on fears that the online stockbroker, which has diversified into mortgages, could go bankrupt because of sub-prime losses. Meanwhile, shares in the US’s largest mortgage lender Countrywide sank again after the company warned that ifits credit rating drops one more notch with worries over its loans, it could struggle to raise...
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