Via the Mortgage Insider, defunct subprime lender New Century Financial disclosed yesterday that -- oops! -- it "more likely than not" overstated its 2005 earnings. It previously had only pulled back the magic curtain to reveal problems dating to 2006. Matthew Padilla at the OC Register wishes he could see more of what Oz has behind that curtain, too:
However, the real story will probably never be told, since the company said today the bankruptcy proceedings are making it difficult to revise and refile previous financial statements. In other words, they have bigger fish to fry. I find that disappointing. I'd like to know exactly what went wrong and when, so I can see if anyone else is making the same mistakes now.
New Century used to go by the tagline of A New Shade of Blue Chip. Since that's pretty much out by now, I'll serve up a new suggestion: Screwing Up Royally, Since 2005.