| Defaults fluster economy
They're being blamed for a variety of problems this week, including the Dow's tumble on Tuesday and the record number of home foreclosures announced the same day. During a speech Thursday in Boca Raton, former Federal Reserve Chairman Alan Greenspan said that defaults on subprime mortgages could negatively affect the broader economy if home prices continue to drop. Subprime loans, which carry higher interest rates, are made to people with poor credit ratings. Florida, which accounts for one-tenth of the country's subprime loans, could face more pain than most. "There's clearly some elements of a crisis," said Mark Vitner, Wachovia Corp.'s senior economist. What's the problem with subprime lenders? Some of the biggest, such as New Century Financial Corp., are facing serious financial problems.
Blue Chip News: BWR Begins Tracking SunTrust Banks Inc.
Coca-Cola, fast cars, and SunTrust Banks -- this Sun Belt financial holding company is southern to its core. Its eponymous flagship subsidiary SunTrust Bank operates approximately 1,600 bank branches across an arc of southeastern states, including Alabama, the Carolinas, Florida, Georgia, Maryland, Tennessee, and Virginia, plus Washington, DC. The bank's offerings include retail and commercial banking, as well as trust services, credit cards, mortgage banking, mutual funds, insurance, lease financing, asset management, and securities underwriting and dealing. Shares were down 2% announcing plans to release first quarter results. BellwetherReport.com is a leading online research firm for international investors looking to get an edge over their portfolio. Investors seeking the most up to date information on SunTrust Banks Inc.
Lender will close Orlando call center
HSBC Mortgage Services plans to close its collections call center in Orlando, eliminating about 110 local jobs, the company said this week.
The subprime-mortgage business of Chicago-based HSBC North America said it would move the work and an undetermined number of positions to an operation in Tampa. HSBC expects to complete the action by June.
Job-placement services are being provided to the local workers, it said.
The company also recently streamlined its mortgage-services headquarters in suburban Charlotte, N.C., eliminating an unspecified number of jobs there.
HSBC's local cutback is the latest corporate downsizing in Central Florida this year related to the turmoil in the subprime-mortgage business, which provides higher-interest home loans to riskier borrowers with blemished credit histories.
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