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Article: Some See a Silver Lining In Subprime Loan Clouds.(Industry overview)
- Article from:
- American Banker
- Article date:
- March 15, 2007
- Author:
CopyrightCOPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The financial services sector has been hit hard in recent weeks as investor concern has built about subprime mortgage lending exposure, but some analysts and investors said Wednesday that the carnage may be overdone.
The group of banking stocks in the Standard & Poor's 500 has fallen about 6.4% since early last month, when several lenders, including New Century Financial Corp. of Irvine, Calif., disclosed credit-quality issues related to subprime loans. The S&P 500 has dropped 4.3% in that period.
On Tuesday the American Banker 225 index fell more than 5.3% and the banking stocks in the S&P lost 2.9% in heavy trading. Both measures recovered a bit ...