10/16/2010 06:59 pm ET | Updated May 25, 2011

Mortgage Damage Spreads: Big Bank Stocks Hit Again As Modern Finance Collides With The Legal System

The unfolding foreclosure-processing debacle is causing bank stocks to slide and putting millions of delinquent borrowers in limbo.

But how disruptive the crisis ultimately becomes--for homeowners, the housing market and the broader economy--depends on how quickly a number of technical problems and legal challenges are resolved in the months ahead.

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