Subprime Lender Files for Bankruptcy

New Century Financial filed for Chapter 11 bankruptcy protection and said it would cut more than half of its workforce. The lender was hit by losses on subprime loans. One homeowner whose financial stability collapsed after his subprime loan talks with Karen Grigsby Bates. David Peters, who could only buy a home in San Francisco's Bay Area by getting a subprime mortgage, talks with Madeleine Brand.

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