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The Company's principal business is attracting checking and savings deposits from the general public and using such deposits, together with borrowings and other funds, to make real estate, business and consumer loans.
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locosuerte (98.90) Submitted: 10/10/06 4:46 PM : Start Price: $58.89 FED Score: 66.63
FED is highly exposed to ARM mortgages (including neg-am) in the volatile Southern California housing market. Any combination of house price declines and interest rate hikes will put negative earnings pressure on the stock. FED is already reporting as profit earned, but not yet paid, interest from negative amortization loans.
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