Ellington Capital Management is in the process of finalising an agreement with Fremont General to buy $2.9bn (€2.1bn) worth of loans and the distressed lender's real estate business, including its mortgage bond investments and loan origination platform.
Last month, Fremont shuttered its subprime unit after the Federal Deposit Insurance Corporation issued a cease-and-desist order to the company because of poor underwriting standards.
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