Fremont I&L Under Cease & Desist Order with FDIC

Whoops.

Seems that Fremont General, a sub-prime mortgage lender, will not file its annual report and 10K on time.

One of the reasons is that Fremont Investment & Loan, its wholly-owned industrial bank, is becoming closely acquainted with several members of the FDIC staff--in the worst way:

Additionally, the Company expects that it, FIL and the Company's wholly owned subsidiary, Fremont General Credit Corporation ("FGCC"), will enter into a voluntary formal agreement, to be designated as a cease and desist order (the "Order"), with the Federal Deposit Insurance Corporation (the "FDIC").

Another sub-prime lender, New Century, faces criminal probes and its auditor will issue the "paragraph of death," questioning the Company's ability to operate as a "going concern."

HT: Calculated Risk