August 14, 2007

America's Fallen Homes

Much has been written about the American Real Estate crisis. But this one - Insider Trading at American Home? - Business Week brings out another prespective.
The shares of one of the biggest mortgage lenders in US -American Home Mortgage Investment had slipped from a high of $36.40 last December to $10.47 by late July as the housing crisis deepened. On July 31, things got decidedly worse. After the Melville (N.Y.) company announced that it would delay its dividend amid growing cash woes, panicked investors fled, sending the shares tumbling $1.04 by the end of the day. Six days later, American Home Mortgage filed for bankruptcy.
On Aug. 1, with the stock trading at $1.17, CEO Michael Strauss sold 2.97 million shares worth $3.5 million, according to filings with the Securities & Exchange Commission.
Another Enron in the making?

1 comment:

Anonymous said...


You did not mention about Lahman brothers shuting down the sub-prime division