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06/16/07
Goldman, Bear Stearns hurt by defaults on home loans
Filed under: General, Mortgages
Posted by: Lillian Wong @ 6:34 pm

NEW YORK - Wall Street investment banks Goldman Sachs Group Inc. and Bear Stearns Cos. on Thursday said fiscal second-quarter profit was squeezed by the nation’s mounting home-loan defaults. Both investment banks, among the world’s largest underwriters of bonds that back mortgage loans, said the shakeout in the subprime sector continued to erode performance. The industry has suffered this year as delinquencies on U.S. loans to homebuyers with poor credit have climbed to an all-time high in the first three months of the year.  More…

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