Subprime Debacle Tanks Brookstreet

..but then didn't we see the subprime mess coming here in California, where paper boys were buying 3,000 sf homes for $800 a month and speculators were snapping up condos like candy?
Latest victim: Brookstreet Securities- CMO's bit them bigtime.

Friday, June 22, 2007

Irvine broker Brookstreet faces liquidation

Attorneys say clients lost money on risky investments tied to complex mortgage securities.

By JOHN GITTELSOHN and RONALD CAMPBELL

THE ORANGE COUNTY REGISTER

In another fallout from Orange County's subprime mortgage industry collapse, Brookstreet Securities Corp., an Irvine broker dealer, shut its doors and laid off 100 local employees because it could not meet margin calls on complex securities backed by faltering mortgages, company spokeswoman Julie Mains said.

Mains said Brookstreet went from $16 million in capital Friday to being $3 million under water Wednesday because its clearing firm, National Financial Services, demanded payment for securities bought on margin.... (see the rest of the story at: http://www.ocregister.com/ocregister/money/subprime/article_1740651.php)