Stock in the subprime lender Accredited Home Lenders took a big hit Monday after the company said it was looking for additional financing to stay afloat. Other lenders specializing in loans to people with low income or weak credit are also struggling, putting Wall Street on edge.
RENEE MONTAGNE, host:
In today's business report, the latest on the mortgage meltdown.
Another big subprime lender saw its stock price sink nearly 18 percent yesterday. Investors bailed out of Accredited Home Lenders' stock after the company said it's looking for additional financing to stay afloat. The company specializes in loans to people with low income or weak credit. And other lenders in that market also face financial trouble.
That's put Wall Street on edge. Investors are trying to figure out if trouble in the subprime market will affect other parts of the economy. They'll be watching for clues from Federal Reserve officials who begin a two-day meeting today.
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