Cerberus ends Option-one deal

This is the anatomy of the mortgage mess.

• It was originally offered at $1.3 billion.
• Then it was valued at $1.1 billion
• Cerberus was to pay $800 million; as $300 million was the valuation haircut on the the $1.1 billion.
• Today, HRB closed Option One, laid off 620 employees, and took another $75 million charge.
• The deal with Cerberus is off, and their still isn't a sale of the origination business.
• The servicing business will have $125 million impairment.
• And there's no break-up fee.