Business and Finance
Banks that lent money to hedge funds and other big risk-takers are asking for some of it back, adding a new dimension to the financial crisis. As the value of mortgage-backed bonds and other investments fall, lenders are demanding that borrowers put up more cash or assets. The resulting selloff by investors is troubling policy makers.</br></br>The number of homes entering foreclosure hit a record in the fourth quarter. Homeowners' share of the equity in their homes fell to 48%.</br></br>---</br></br>The Dow industrials fell 214.60 points, or 1.8%, to 12040.39 amid escalating problems in the bond market. Crude rose 95 cents to a record $105.47 a barrel.</br></br>A Carlyle fund defaulted on loans backing part of its portfolio of U.S. mortgage securities. S&P slashed its ratings on a KKR fund.