Zoe Cruz, co-president of Morgan Stanley, now unemployed

Zoe Cruz, the most senior woman on Wall Street, on Thursday became the latest high-profile casualty of the US subprime mortgage meltdown when she lost her job as co-president of Morgan Stanley. The ousting came three weeks after Morgan Stanley revealed it had lost more than $3.7 billion (USD). Morgan Stanley’s maximum potential losses from …

Northern Rock in Florida with a run on a fund

Perceiving a problem with a Florida investment fund, investors withdrew about $10 billion in recent weeks before Florida halted any further withdrawals. Similar to run on U.K. bank Northern Rock, it shows how far this year’s subprime-fueled credit crisis has spread. Florida’s Local Government Investment Pool, which had more than $27 billion in assets at …

One third of U.K. homeowners face big house payment increases

Some say the U.K. is a warning to the U.S. but the news sounds about the same. One third of all U.K. homeowners will face big increases in their house payments. A report released yesterday said approximately 5.5 million people in the U.K. would be effected. Many fell into the subprime trap because of divorce, …

Option ARM lawsuit may seek class action status

A suit files in South Carolina alleges the borrower was not properly informed of how an option ARM actually works. The suit was filed Nov. 16 in U.S. District Court in Charleston and names as defendants World Savings Bank FSB of Oakland, Calif., and Golden West Financial Corp. and Wachovia Corp., both of Charlotte. Option …

Did Countrywide foreclosures abuse the bankruptcy system?

The federal agency monitoring the bankruptcy courts has subpoenaed Countrywide Financial, the nation¬ís largest mortgage lender and loan servicer, to determine whether the company¬ís conduct in two foreclosures in southern Florida represented abuses of the bankruptcy system. The subpoenas for Countrywide documents were issued in late October by the United States Trustee after the agency …