American Home Mortgage's plummet continued to drag down the financial sector Friday, as other lenders bore the brunt of a residual share-price beating.
AHM, based in Melville, N.Y., announced last night that it's laying off 6,000 workers, or roughly 90% of its workforce, as it shuts down most of its operations due to deteriorating housing-market conditions. CEO Michael Strauss said market conditions have left the company with "no realistic alternative." Shares gave up 52.1% to 69 cents in a flurry of trading Thursday.
Several other lenders charged downhill on AHM's heels, including Impac Mortgage, which slid 26.2% to $1.66; IndyMac Bancorp, off 6.6% to $19.66; Fremont General, down 16.5% to $4.49; and CIT, which lost 4.9% in heavy trading.
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