Fremont deal with investor Ford withers

Santa Monica-based banking company and former sub-prime lender Fremont General Corp. broke off talks with an investment group led by billionaire Gerald J. Ford.

In a statement, Fremont said it couldn’t reach a new agreement with Ford after an accord reached this year collapsed. The company said it was “in discussions with potential new management teams” and would replace its chief executive and chief operating officer.

Ford told Fremont last month that he wouldn’t complete an $80-million investment under terms of a May agreement that also would have allowed him to appoint new management.

Federal regulators cited Fremont in March for improper mortgage-lending practices and ordered the company to stop taking new home-loan applications.

The company said it was still exploring “strategic alternatives” but declined to elaborate.

Before Fremont’s announcement, its shares fell 6 cents in regular trading Tuesday to $3.06, down 81% year to date. The shares fell 15 cents, or 4.9%, to $2.91 in after-hours trading.