This corrupt and toxic company is almost toast - and good riddance. They knowingly enabled mortgage fraud, they lent money to liars they knew would never be paid back, and their CEO enriched himself at the expense of shareholders and employees, dumping hundreds of millions in shares as fast and as furious as he could even as he instructed his corrupt suck-up board to buy-back CFC shares on the open market to prop up the price. Sickening. Just sickening.
Angelo Mozilo is now under SEC investigation and in my opinion he's heading for the same fate as Bernie Ebbers, Ken Lay and Dennis Kozlowski. Insider trading and market manipulation can get you only so far - at one point even the monkeys in the government have to at least pretend we're still a nation of laws and come get your ass. That moment is coming soon for Angelo and it will be sweet.
SPECIAL NOTE: IF YOU HAVE ANY MONEY - EVEN FDIC INSURED MONEY - IN COUNTRYWIDE GET IT OUT NOW AND GET IT OUT FAST!!!!
Here's an article on CFC's potential bankruptcy, and then one with Angelo denying the whole thing. Maybe The Fed or the FHLB have told Angelo not to worry - they won't let him fail. Maybe the US government will nationalize CFC like the UK is doing with Northern Rock. Or maybe CFC breaks up. But no matter what it should get interesting, and the CFC death spiral is on. It's not "if", it's "when".
New Worries Crush Countrywide
Countrywide Financial's shares are plummeting to new lows amid rumors that the mortgage lender could be nearing a bankruptcy filing.
The beleaguered company run by CEO Angelo Mozilo has tanked nearly 25% in Tuesday trading, challenging the notion that the nation's largest mortgage lender is too big to fail.
"The rumor was they would file for Chapter 11 this week," Michael Mainwald, head of equity trading at Lek Securities, told Bloomberg during Tuesday afternoon trading.
Countrywide Denies Bankruptcy Imminent
LOS ANGELES (AP) -- Shares of Countrywide Financial Corp., the nation's largest mortgage lender, partially recovered from a midday plunge Tuesday after the company denied rumors that it was planning to file for bankruptcy protection.
In a prepared statement, the company said there was "no substance to the rumor that Countrywide is planning to file for bankruptcy, and we are not aware of any basis for the rumor that any of the major rating agencies are contemplating negative action relative to the company."