Fremont General Corporation - Subprime lender

Update - 2008-06-20: Fremont General Corp. has filed Chapter 11 Bankruptcy. From Reuters:

"Fremont, said in a statement that regulators had approved CapitalSource Inc's (CSE.N: Quote, Profile, Research) purchase of a substantial portion of the assets of Fremont's wholly-owned subsidiary, Fremont Investment & Loan, and the assumption of all of its deposits. CapitalSource is a real estate investment trust."

According to a press release on their web site, CapitalSource will use the acquisition to form CapitalSource Bank, pending FDIC approval.

Update - 2007-03-05: A statement has been posted on the Fremont Investment and Loan site giving official notice of the shutdown.

Original Listing - 2007-03-02: Faced with a likely cease-and-desist from the FDIC, Fremont capitulated and shut down its residential real estate lending. All that will remain is its industrial bank subsidiary (named "Fremont Investment & Loan"). Commercial lending operations will continue. Fremont has enlisted Credit Suisse to help sell off what it can, if it can.

I'm sure people will be lining up to continue depositing money in FIL. After all, deposits are insured by the FDIC up to $100k (what, that doesn't comfort you?)

A background blurb about Fremont from the Yahoo! article:

Fremont General Corporation is a financial services holding company which is engaged in commercial real estate and non-prime residential real estate lending operations on a nationwide basis. At December 31, 2006, Fremont Investment & Loan had commercial real estate loans in its portfolio located in 30 states. During the fourth quarter of 2006, Fremont Investment & Loan originated residential real estate loans in 47 states. Loans originated by the Company are done primarily on a first mortgage basis.

Update, March 4th 2007: Fremont AEs and others report that FIL has apparently been shut down (link 2) by the FDIC. That would seem to be the nail in Fremont's coffin.

Amusingly, this happened while the Fremont execs were all on their annual trip to Hawaii. Complacent AEs take note: collapsing does not wait till it is convenient for you.

Update, March 5th, 2007: A statement has been posted on the Fremont Investment and Loan site giving official notice of the shutdown.