Depths of NovaStar Financial’s awfulness explained in new book

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One of the high flyers in the subprime-mortgage game was based in Kansas City. Shares of NovaStar Financial traded at $70 at one point.

It was an illusion baked in pie crust. NovaStar’s business practices were so shoddy that even Lehman Brothers, which went bankrupt during the mortgage crisis, knew enough to stop buying and selling NovaStar-originated loans in 2004.