Falling stock prices and turmoil in the securitization markets have derailed two merger deals.

Fremont General Corp., an insurer based in Santa Monica, Calif., on Monday terminated acquisition talks with the lender PacificAmerica Money Center Inc. Also Monday, Life Financial Corp. of Riverside, Calif., said that it was terminating a merger agreement with FirstPlus Financial Group Inc., Dallas.

Fremont agreed last month to buy PacificAmerica, of Woodland Hills, Calif., for $55 million in cash, or $10 a share. Fremont backed out because of "adverse changes in the securities markets in general, and the subprime industry in particular," PacificAmerica said.

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