Lawyr.Org

Listening to its GC might well have saved New Century Financial, once the nation's second-largest subprime mortgage lender, from plunging into bankruptcy. That's one lesson from a report filed by Michael Missal, appointed by New Century's bankruptcy trustee to investigate the company's problems. Missal wrote that former New Century general counsel Stergios Theologides recognized the high risk of subprime mortgages and warned senior managers about it in a memo in the fall of 2004. But no one paid attention.