The nationwide mortgage meltdown of 2007 spurred some of the biggest news stories of this year, affecting homeowners and big corporations in Missouri.
Option One Mortgage Corp., a Kansas City based mortgage company, specialized in sub-prime mortgage loans got caught in the meltdown that claimed dozens of mortgage lenders as mounting borrower defaults created huge losses.
Cerberus Capital Management LP announced plans to buy Option One back in April, but due to the worsening real estate market the plan fell through in early December.
NovaStar Financial Inc., another Kansas City mortgage company, was hammered by the sub-prime mortgage meltdown as their stock price dropped from $105 in January to less than $2 a share at one point. With losses mounting, NovaStar Financial Inc. was forced to give up its status as a real estate investment trust and its stock was de-listed on the New York Stock Exchange.
With 2008 quickly approaching us NovaStar now has a work force of roughly 600, compared to the 2,000 employees at the beginning of 2007.
A.G. Edwards Inc. once headquartered in St. Louis, was purchased by Wachovia Corp. for $6.8 billion. By purchasing A.G. Edwards Inc., Wachovia Corp. became the nation’s second largest retail brokerage firm, which will be based in North Carolina.
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