Leading lender likens US credit crisis to Great Depression

Andrew Clark in New York
Friday August 31, 2007
The Guardian

The US financial industry displayed fresh signs of distress from the credit crunch afflicting global money markets yesterday, with one mortgage provider describing lending conditions as the worst since the Great Depression of the 1930s.

Leading accountancy firm H&R Block revealed huge losses at its up-for-sale mortgage arm, Option One, and said it was considering a halt on new loans. Reporting a quarterly loss of $302m (£150m), Mark Ernst, chief executive, said: "The loan originations market is in the midst of the most severe dislocation it has seen in years, maybe the most severe since the 1930s."