Sinking...Thornburg Mortgage Inc. (NYSE: TMA) stock plummeted 63% percent on June 19, 2008, after the company confirmed it might be the end of the game for them. Thornburg managed to raise the necessary capital to avoid bankruptcy 2 months ago, after the company received over $1.8 billion in margin calls. Today, however, the situation still remains tense.

The company had stated: "The occurrence of recent adverse developments in the mortgage finance and credit markets has adversely affected our business, our liquidity and our stock price and has raised substantial doubt about our ability to continue."

Thornburg is currently down to a quarter of dollar per share and it is doubtful if the stock will recover on its own. Even if the company had planned to implement a stock split it might now be to late for that. Considering the company's own disbelief in recovery, we might state bankruptcy draws closer and closer.

Also, earlier this week, the home-mortgage finance company received subpoenas from the US securities regulators. Thornburg voluntarily complied with the subpoenas for documents related to an ongoing regulatory probe. From the chain of events, it now seems the company has given up and will just go with the flood.

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Thornburg was not the only one to suffer badly from the mortgaged market collapse. Such companies as Impac Mortgage Holdings Inc. (NYSE: IMH) and Hanover Capital Mortgage Holdings, Inc (AMEX: HCM) also had their stock crushed under the $1 limit. It just seems that the giant fell the hardest.