Fresh signs of the continuing turmoil in the US subprime mortgage market emerged yesterday. Woes in the sector dented Lehman Brothers' still record quarterly earnings, while Countrywide Financial - the biggest US mortgage lender - revealed a doubling in foreclosures over the past year.
A spike in late payments and defaults by borrowers with weak credit has triggered the bankruptcy or closure of dozens of subprime lenders following a period of aggressive lending, particularly last year as the housing market slowed.
