Grant Thornton, a leading accounting and audit firm, resigned from assisting the company with its audit. In a statement Grant Thornton cited the following reasons:
"During the course of the audit there were instances where the Company did not provide certain requested information to Grant Thornton on dates previously agreed upon with management."
I think many will contend that when all is said and done that the subprime market, while inherently risky, is not a bad business. A bad business is adding poor business and management decisions made by executives to the inherent risk in subprime lending. Fremont and New Century will be the poster children for poor decision making and executive greed that drove those two companies in to the ground.
We had a saying at our office about difficult loans: "If Fremont can’t do it, it can’t be done." There were so many bad loans that Fremont originated; it was amazing that they could continue to operate as long as they did.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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