Here's one of our favorite quotes of the day: "Nearly overnight, mortgage company execs saw their personal wealth evaporate. Some will find it hard to adapt to a less lavish lifestyle. " Awwwww.
From Business Week: In February, Michael Strauss, founder and chief executive officer of American Home Mortgage (AHMI.Q), went to bed, safe in the knowledge that his 4.5 million shares in the company were worth $160 million. Six months later, pretty much all of that wealth has vanished. Fears over subprime mortgages led to a credit crunch, squeezing subprime specialist American Home to the point that it filed for bankruptcy Aug. 6."
And this: Accredited Home Lenders Shuts Down Much of Its Business Amid Mortgage Turmoil
Accredited Home Lenders said it will cut its work force to 1,000 people -- from 2,600 at the end of June -- and close 65 branches. The company will immediately stop accepting applications for home loans in the U.S., though it will honor the loans it has already committed to finance.