quote:Originally posted by dacollecter: Rumor out that Warren Buffett may be buying parts of the company.
A "rumor" is all it is! buffet is way to smart to buy into a company that will most likely be filing for chapter 11 bankruptcy protection by the end of the year or sooner!!!
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posted
I jumped in pre-market at $20.50 on this speculation. I'll set a stop to guarantee some of my current profit, but maybe this will see $37 this week again. doubt it, but maybe!
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Countrywide: BofA Made a $2B Investment Wednesday August 22, 7:14 pm ET By Alex Veiga, AP Business Writer Countrywide Financial Says Bank of America Made Equity Investment of $2 Billion Into Company
LOS ANGELES (AP) -- Countrywide Financial Corp. said Wednesday that Bank of America Corp. has made an equity investment of $2 billion in the company, a deal that comes as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
The transaction was completed and funded Wednesday, Countrywide said.
"Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.
"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," he said.
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.
Countrywide shares jumped more than 20 percent to $26.25 in after-hours trading. Before Countrywide's announcement, the shares had closed the regular session up 3 cents at $21.82.
Kenneth D. Lewis, Bank of America's chairman and CEO, said in the statement that turmoil in the stock market has led some to underestimate the value in Countrywide's operations and assets.
"This investment reflects our confidence in their business and recognizes the importance of the company in providing home financing across the country," Lewis said.
Calabasas-based Countrywide said last Thursday it had borrowed $11.5 billion from several dozen banks so it could keep making home loans.
As defaults increased on subprime mortgages to borrowers with shaky credit histories, and the problems stretched to other credit markets, Countrywide's shares plunged, hitting a 52-week low of $15 last Thursday.
The stock rebounded after the Federal Reserve cut a key interest rate Friday. Even with the rally, Countrywide shares have lost about half their value so far this year.
Shares of Bank of America, which rose 35 cents in regular trading Wednesday to $51.65, gained another 1.8 percent to $52.60 in after-hours trading.
My innate cynicism disallows me to take this at face value.. I wonder if BA was forced by circumstance to do this -- ie, if they had not done it, CFC would have gone the way of AHM, LUM, et al, and that somehow would've ended up damaging the "$1.5T of assets" of BA.
Maybe GS, JPM, BA, Freddie, Fanny and other unknowns played a game of eeny-meeny-moe, and it fell on BA to foot the bill.
Ha ha, what empty speculations. These pesky idling brain cells...
-------------------- the market is not your mother
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quote:Originally posted by fourseven: Wow.. quite the bailout.
My innate cynicism disallows me to take this at face value.. I wonder if BA was forced by circumstance to do this -- ie, if they had not done it, CFC would have gone the way of AHM, LUM, et al, and that somehow would've ended up damaging the "$1.5T of assets" of BA.
Maybe GS, JPM, BA, Freddie, Fanny and other unknowns played a game of eeny-meeny-moe, and it fell on BA to foot the bill.
Ha ha, what empty speculations. These pesky idling brain cells...
did you crunch the numbers?
7.25% annual dividend?
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.
Countrywide shares jumped more than 20 percent to $26.25 in after-hours trading. Before Countrywide's announcement, the shares had closed the regular session up 3 cents at $21.82.
their 10Q isn't very easy to read (and fully comprehend) essentially? they had 74 billion of mortgage money "out" on the street... they claim that only about 1.5 billion is non-prime... something doesn't add up....
they haven't filed the details yet... somebody is gonna clean up on this one... it looks like they just diluted about 100 million shares at 18$... they had about 600 million out already... thats about 17% dilution...
-------------------- Don't envy the happiness of those who live in a fool's paradise.
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I'm back out at 22 today after shorting down. There might be a few bucks more down, but I didn't want to hold for a gap-up on silly news again.
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Well,I was off by a week.CFC closed down yesterday low enuf to draw interest.Sum will look for a quick buck by buying today and sell for a quick profit.My bet now is a bottom closer to 6.85 or a little lower befor mid march.JMO
posted
looks like they have some new issues to deal with. rumored bankruptcy again and maybe some other shady dealings
News Story
Text Size: A A Countrywide Financial Tells Judge It 'Recreated' Letters -NYT 12:02 PM EST January 8, 2008 Today's free fall in shares of Countrywide (NYSE: CFC) are being attributed to speculation the company will file bankruptcy due to liquidity issues. A Bloomberg report cited two market participants who mentioned the rumors. Countrywide has denied bankruptcy rumors in the recent past.
Countrywide's credit default swaps rose to 22%, according to Bloomberg.
Shares of Countrywide are down 16% intra-day.
StreetInsider Back to Headlines
Countrywide Financial Tells Judge It 'Recreated' Letters -NYT 1:17 AM EST January 8, 2008
NEW YORK (Dow Jones)--The Countrywide Financial Corp. (CFC) fabricated documents related to the bankruptcy case of a Pennsylvania homeowner, court records show, raising new questions about the business practices of the giant mortgage lender at the center of the subprime mess, The New York Times reported on its Web site Tuesday. The documents - three letters from Countrywide addressed to the homeowner - claimed that the borrower owed the company $4,700 because of discrepancies in escrow deductions. Countrywide's local counsel described the letters to the court as "recreated," raising concern from the federal bankruptcy judge overseeing the case, Thomas P. Agresti. "These letters are a smoking gun that something is not right in Denmark," Judge Agresti said in a Dec. 20 hearing in Pittsburgh, the Times reported. Judge Agresti said that discovery should proceed so that those involved in the case, including the Chapter 13 trustee for the western district of Pennsylvania and the U.S. trustee, could determine how Countrywide's systems might generate such documents. The Times reported that a spokesman for the lender, Rick Simon, said: "It is not Countrywide's policy to create or 'fabricate' any documents as evidence that they were sent if they had not been. We believe it will be shown in further discovery that the Countrywide bankruptcy technician who generated the documents at issue did so as an efficient way to convey the dates the escrow analyses were done and the calculations of the payments as a result of the analyses." The documents were generated in a case involving Sharon Diane Hill, a homeowner in Monroeville, Pa. Ms. Hill filed for Chapter 13 bankruptcy protection in March 2001 to try to save her home from foreclosure. After meeting her mortgage obligations under the 60-month bankruptcy plan, Hill's case was discharged and officially closed on March 9, 2007. Countrywide, the servicer on her loan, did not object to the discharge; court records from that date show she was current on her mortgage. But one month later, Hill received a notice of intention to foreclose from Countrywide, stating that she was in default and owed the company $4,166, the paper reported. Court records show that the amount claimed by Countrywide was from the period during which Hill was making regular payments under the auspices of the bankruptcy court. They included "monthly charges" totaling $3,840 from November 2006 to April 2007, late charges of $128 and other charges of almost $200. A lawyer representing Ms. Hill in her bankruptcy case, Kenneth Steidl, of Steidl and Steinberg in Pittsburgh, wrote Countrywide a few weeks later stating that Ms. Hill had been deemed current on her mortgage during the period in question. But in May, Countrywide sent Ms. Hill another notice stating that her loan was delinquent and demanding that she pay $4,715.58. Neither Mr. Steidl nor Julia Steidl, who has also represented Ms. Hill, returned phone calls seeking comment. The Times reported that the Countrywide letters were dated September 2003, October 2004 and March 2007, and showed changes in escrow requirements on Hill's loan. "This letter is to advise you that the escrow requirement has changed per the escrow analysis completed today," each letter began. Steidl told the court he had never received the letters. Furthermore, he noticed that his address on the first Countrywide letter was not the location of his office at the time, but an address he moved to later. Neither did the Chapter 13 trustee's office have any record of receiving the letters, court records show. The Times reported that when Steidl discussed this with Leslie E. Puida, Countrywide's outside counsel on the case, he said Ms. Puida told him that the letters had been "recreated" by Countrywide to reflect the escrow discrepancies, the court transcript shows. During these discussions, Ms. Puida reduced the amount that Countrywide claimed Ms. Hill owed to $1,500 from $4,700. A Countrywide spokesman said that in bankruptcy cases, Countrywide's automated systems are sometimes overridden, with technicians making manual adjustments "to comply with bankruptcy laws and the requirements in the jurisdiction in which a bankruptcy is pending." Asked by Judge Agresti why Countrywide would go to the trouble of "creating a letter that was never sent," Ms. Puida, its lawyer, said she did not know. Hill's matter is one of 300 bankruptcy cases involving Countrywide that have come under scrutiny by Ronda J. Winnecour, the Chapter 13 trustee in Pittsburgh. Newspaper Web Site: http://www.nytimes.com
(END) Dow Jones Newswires 01-08-08 0117ET Copyright (c) 2008 Dow Jones & Company, Inc.
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posted
Yeah,I didnt think it would tank today.They stopped trading for Counrywide for the day after it dropped just more than 17%.The company is saying that they arent going into bankruptcy. That it was a rumor started on Wall Street.he final for the day is 6.32
posted
Yeah I noticed that.CNBC stated that trading was halted the after news about a bakruptcy.After news came out it was a rumor the stock began trading again.
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