Delta Financial Files for Bankruptcy
This is just one of our articles referencing the financial crisis, crash of the housing market, subprime, and more:
In August Delta Financial announced layoffs. On December 6th it was said that Delta Financial may soon file for bankruptcy. That day is now. Delta Financial Corp., the Woodbury-based subprime mortgage lender, filed for bankruptcy Monday, almost two weeks after announcing it would stop originating loans and file for court protection.
“Due to an unexpectedly severe and unprecedented downturn in the sub-prime market and after careful exploration of all of its reasonable opportunities,” Delta stopped originating loans and fired 1,300 of its 1,350 workers since August, according to papers filed with the U.S. Bankruptcy Court in Delaware.
Included in Delta’s list of its top creditors were subsidiaries of HSBC, KPMG and Deutsche Bank — all multinational banks that have lost hundreds of millions of dollars this year on bad mortgage investments.
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