A Special HousingPANIC Message for Angelo Mozilo at Countrywide Toxic Mortgage

You, Angelo Mozilo, will come to represent all that was evil and all that was wrong with the Late Great Housing Ponzi Scheme and Mortgage Madness.

* You made fraudulent garbage loans to people you know couldn't pay them back, knowing you could pawn off your trash to unsuspecting hedge funds, investment banks, governments, pension funds and investors

* You knowingly enabled rampant mortgage fraud

* You enriched yourself to the tune of hundreds of millions by dumping your stock while at the same time you directed your company to buy back the stock at inflated prices on the open market

* You blatantly bribed public officials to look the other way, like James Johnson, Chris Dodd, Kent Conrad, Alphonso Jackson, Donna Shalala, Richard Holbroke, and who knows who else

* You ruined lives. You destroyed families. You damaged your company and your country. And you destroyed the world's trust in the American financial system.

* Above all, you did what you did so as to personally enrich yourself, at the destruction of others.

It will give us no joy to see you frog-marched off to jail. It will give us no joy when the day comes that you are finally convicted of your crimes. And it will give us no joy when you are sent off to prison for the rest of your life, probably at the same facility housing the last shamed bubble fraudster, Bernie Ebbers.

Angelo Mozilo, you are the poster boy for the Late Great Housing Bubble and Crash.

I hope it was worth it.

You are garbage. And you are going to jail for a long, long, long time.

LET THEM EAT CAKE! Angelo Mozilo (Angelo_Mozilo@countrywide.com) has just discovered the power of the internets (and the 'reply all' button)

Gotta feel a bit sorry for the Great Orange One. He's gonna go to jail, we all know that. He's gonna have his assets seized, we all know that. His company is going to go bankrupt and all his employees are going to lose their jobs, and some will go to jail too, we all know that. And what's left of his reputation has been destroyed, we all know that.

But now, on top of EVERYTHING that has gone wrong for him lately, he stupidly hits "reply all" to a desperate homedebtor's anguished email, calls him disgusting, blames blogs and the internets, and is exposed by the MSM worldwide for the cold, heartless, corrupt fool he is.

LET THEM EAT CAKE!!!!

Make sure you send Angelo and crew a nice letter too HP'ers. I'm sure he'll enjoy it.

Here's Angelo's response on the original LoanSafe thread that exposed him, and internal Countrywide email cc list that some might enjoy having their hands on:

Angelo_Mozilo@countrywide.com wrote:
This is unbelievable. Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the internet. Disgusting.

And here's the LA Times covering the mess. Oh, this will be fun.

Countrywide Financial Chairman Angelo Mozilo's e-mail sets off a furor - He calls a borrower's plea for help a "disgusting" example of form letters inundating the Calabasas mortgage lender.

Apparently clicking "reply" when he meant to hit "forward," Countrywide Financial Corp. Chairman Angelo Mozilo ignited an online furor Tuesday by describing a mortgage customer's plea for help as a "disgusting" example of form letters inundating the Calabasas home lender.

Mozilo's e-mail rocketed back to the customer, Daniel Bailey Jr., who had asked Countrywide to modify the terms of his loan so he wouldn't lose his home of 16 years.

Will Bernanke and Paulson let Countrywide Toxic Mortage fail (after BofA pulls out in the next few days)?

It's coming.

You can just feel it.

Countrywide is about to go belly up, Angelo Mozilo is about to be indicted, and BofA is about to make a run for it.

No way this deal goes through as announced. No way.

So the question is - is Countrywide "too big to fail"?

I don't think so. We're not talking trillions in counter-party risk like Bear Stearns. And we're talking about a company that everyone pretty much knows is going belly up anyway.

If you have ANY money in Countrywide, GET IT OUT AND GET IT OUT NOW.

Stick a fork in it. This orange pig is toast.

Beware Collapse of Bank of America-Countywide Deal

FLASH FLASH FLASH: BofA looking to cut Countrywide bid to $0 to $2, leading analyst recommends they just walk away from the orange pig

Tomorrow's news today, here on HousingPANIC. So when BofA walks away, Countrywide goes bankrupt, and Angelo Mozilo is indicted, there should be no surprises.

Remember when we said 1 penny was too much to pay, and that this deal would NEVER EVER go through? Countrywide is every STD in the book. BofA would have to be the stupidest company on earth to hook up with them. And the Countrywide lawsuits and liabilities for years to come will be staggering.

This gem hot off the wires just now:

BofA may lower Countrywide bid to $2/share or below

Bank of America Corp. is highly likely to negotiate a sharply lower price for Countrywide Financial Corp, and should just walk away from the deal altogether, an analyst said Monday.

Bank of America could face $20 billion to $30 billion in write-downs of Countrywide's mortgage loans after it closes its acquisition of the troubled mortgage lender, FBR Capital Markets analyst Paul J. Miller Jr. told clients in a research note.

"BAC should completely walk away from the CFC deal, as CFC's loan portfolio will prove a drag on earnings and could force BAC to raise additional capital," Miller wrote.

Even if Bank of America sticks with the deal, it's likely that it will cut its offer "down to the $0 to $2 level," and force Countrywide's bondholders to absorb the remainder of any write-downs, the analyst said.

Angelo Mozilo's time as a free man is running low. Countrywide Toxic Mortgage investigations by the FBI, IRS and SEC heating up

Will Angelo go OJ on us soon? A white Ford Bronco with an orange man in the back headin to Mexico? Or will he pull a Ken Lay and just conveniently die?

Anyone who thinks the housing crash and mortgage meltdown is over is fooling themselves. The next great chapter is coming - The Arrest of Angelo Mozilo and the Fall of COUNTRYRON. And the charges against Countrywide that will come will give BofA a convenient reason to walk away from that moment of stupidity too as CFC goes bankrupt and folds up shop.

What's frustrating is that HP'ers knew what was going on for months and months, it was all just so OBVIOUS. And yet it took the government years to finally getting around to do something about it, after the real damage had been done.

Government Intensifies Mortgage Investigation

Federal agencies are intensifying a criminal investigation of the mortgage industry and focusing on whether some lenders turned a blind eye to inflated income figures provided by borrowers.

In March, the Justice Department and the F.B.I. began investigating whether the Countrywide Financial Corporation, the troubled mortgage giant, misrepresented its financial condition and loans in filings with the Securities and Exchange Commission.

Countrywide is also under scrutiny by California and Illinois; federal prosecutors in Sacramento; and the United States Trustee, the federal agency that monitors bankruptcy courts. The S.E.C., meanwhile, is examining stock sales by certain Countrywide executives.

Countrywide loses $893 million for the quarter while Angelo Mozilo cashes in for $143 million

Seriously, if BofA completes the CFC acquisition, you'll know something funny is going on with Hank Paulson and Ken Lewis. Countrywide is AIDS, Chlamydia, Genital warts, Herpes, Gonorrhea, Hepatitis and Syphilis all rolled into one. BofA would be dealing with lawsuits, losses and employees going to jail for years and years.

Watch for the other shoe to drop soon here. And watch for the FBI to announce formal charges against Countrywide execs, and Angelo Mozilo by the end of Summer.

And oh, get your popcorn.

Countrywide Financial Corp. said Tuesday it lost $893 million in the first quarter, as rising loan defaults amid a deepening housing downturn forced the nation's largest mortgage lender and servicer to sharply increase its provision for loan losses and book other credit-related charges.

Shareholders saw their stake in the company dwindle as Countrywide shares lost 80 percent of their value by the end of 2007. Shares had hit a five-year peak of $45.03 in February of that year.

Meanwhile, Mozilo was paid more than $22.1 million and cashed out $121.5 million in stock options last year.

HousingPANIC Stupid Question of the Day

When he is eventually sentenced and convicted, what do you think Angelo Mozilo's sentence will be (not "should be" - go with "will be")?

# of years in Federal prison ______

$ fine ______

(For reference, Bernie Ebbers got 25 years and $45 million in fines)

Have hope HP'ers - "FBI Criminal investigations have been launched against 17 companies in the fallout of the subprime mortgage collapse"

Angelo Mozilo - you're going to jail. For a long, long, long time.

Say hi to Bernie when you get there.

Criminal investigations have been launched against 17 companies in the fallout of the subprime mortgage collapse, the FBI disclosed late Tuesday.

The list of corporate fraud investigations focused on subprime mortgage lending practices by major banks and companies has grown since January, when the bureau announced a probe of 14 mortgage lenders.

While the bureau will not comment on the companies that are under investigation, two Justice Department officials confirmed to ABC News reports in last week's Wall Street Journal that Countrywide Financial is under investigation.

One more time, so when it happens, people won't be able to say they weren't warned: GET YOUR MONEY OUT OF COUNTRYWIDE, WASHINGTON MUTUAL AND INDYMAC!!

Banks will now start to fail. Don't take chances.

Period.

The Fed and taxpayer will bail some of 'em out. Some will be bought up, wiping out their shareholders. But others will fold up shop and just go away, leaving their account holders, especially the fools who carried more than the FDIC limits, in a world of pain.

The FDIC will pay out some of the first to fail, but then the FDIC itself will need to be bailed out by the taxpayer. And by the time the FDIC gets around to paying (if they pay), the dollar itself will be even more worthless.

And the first to fail? The banks who have the most wildly-overvalued toxic mortgage garbage still on their balance sheets. Better safe than sorry, and in my personal opinion, just looking at the stocks of some of these banks should show you that things are quite stable there today.

IF YOU HAVE MONEY AT COUNTRYWIDE BANK, INDYMAC BANK, E*TRADE BANK, WASHINGTON MUTUAL OR ANY OF THE OTHER GARBAGE LENDERS, GET IT OUT NOW AND GET IT OUT FAST.

I would imagine none of you do. HP'ers are in the know. But there's a lot of people out there that for whatever reason (what's on Idol?) still have no idea what's going on or what's to come. That's who we need to reach.

FLASH: Countrywide Toxic Mortgage (finally) under investigation by FBI, and Angelo Mozilo under SEC investigation too. It's just a matter of time now

It's only a matter of time now HP'ers. Angelo Mozilo will spend the rest of his days, after his conviction and surrender, in jail. The orange man will be wearing an orange jumpsuit for the rest of his life, and he will be joined by more than a few of his fellow Countrywide employees in my personal opinion.

A few more comments on this expected development

1) There is NO way that Countrywide gets acquired by Bank of America. No way. Ain't gonna happen. Not even for a penny. BofA would have to be the stupidest organization on earth. The Countrywide lawsuits and criminal investigations will go on for years to come, and the penalties, judgements and fines will be in the tens of billions, if not more. If BofA acquired CFC and their liabilities, it could wipe out BofA's balance sheet in a minute.

2) Angelo Mozilo and Countrywide are rightly taking the blame for the mortgage meltdown, subprime disaster and housing crash. Their employees, led by their insider-trading, self-enriching executives, knowingly enabled mortgage fraud (they called them "liar's loans" folks), and enriched themselves at the expense of their shareholders by dumping shares even as they were borrowing money to buy them back on the open market. Shameful.

3) As pointed out here for years, Countrywide was putting out obviously falsified financial statements in violation of Sarbanes-Oxley in order to juice short term results and their stock price while Mozilo and the insiders were dumping to the tune of hundreds of millions of dollars. Not only will Countrywide be investigated and found guilty, but their auditors will be as well.

4) Countrywide has conned the corrupt and incompetent fools at the Federal Home Loan Bank out of at least $51 billion and likely more than $100 billion, which in the end will be bailed out by the US taxpayers, by using laughably over-inflated and wildly mis-marked mortgage-based assets for loans. NO TAXPAYER BAILOUT FOR THE FHLB - LET THESE BOZOS FAIL TOO!!!

5) Angelo Mozilo will go to jail, unless he flees from justice or kills himself. He is the Ken Lay and Bernie Ebbers of this latest financial mania. He ruined lives, he helped destroy the American economy, and he may be the most destructive business person in the history of the United States. He should be arrested immediately, and he should be shown no mercy.

Ruh-roh: "Countrywide's Risky Mortagages May Be Ballooning Out Of Control"

Seriously, when are we going to hear more in the MSM about liar's loans and option ARMs?

Because it's just so damn obvious what's coming next...

Maybe someone will ask Angelo today about these neutron bombs when he's under oath. Or maybe not. I'm not sure we can handle the truth..

Countrywide's Risky Mortagages May Be Ballooning Out Of Control

As of the end of December, Countrywide had nearly $29 billion in pay-option loans, with about $26 billion of the total having grown beyond their original loan amount, the company said in a filing late Friday with the Securities and Exchange Commission.

"Our borrowers' ability to defer portions of the interest accruing on their loans may expose us to increased credit risk," the company said. It added that its risk could be greater because the amount of deferred interest on pay-option loans was on the upswing.

The Associated Press says that the number of homeowners missing their interest-only payments is still increasing, and a staggering 81% of borrowers with these risky loans provided little or no documentation of their income.

As of the end of December, 71 percent of borrowers with pay-option loans were electing to make less than full interest payments.

And then the angry sheeple starting paying "house calls" on Countrywide Toxic Mortgage executives

Oh, yes, the real fun stuff is starting now.

Now the angry mortgage fraudster and failed flipper sheeple mobs, looking for someone to blame, started to go after the REIC execs in a more up-close-and-personal way.

First up - the Countrywide executives who knowingly enabled and promoted mortgage fraud in order to enrich themselves. Check out this story of one of their execs being hounded in Ohio.

Next the sheeple will be going after the realtors and mortgage brokers who did and said anything in order to put the sheeple into houses they couldn't afford, in order to earn a commission.

HP doesn't recommend violence or personal attacks against the REIC. But it's nice to see the failed housing gamblers take their game up a notch.

But it's too bad they're not blaming the people who deserve the blame the most: Themselves.

In fight against foreclosures, ornery activists tackle Countrywide, nation's biggest lender

CLEVELAND - Folks on Humphrey Hill Drive were still waking up on the icy Saturday morning the shark hunters came to town. They rounded the suburban traffic circle in a pair of rented school buses after a half-hour ride from far more modest neighborhoods, rumbling to a stop at the Garmone family's driveway. Forty-two caffeinated Clevelanders piled out, their leaders carrying bullhorns.

Their quarry, Mike Garmone — a regional vice president at Countrywide Financial Corp., the nation's largest mortgage lender — didn't answer his door. So they deployed, ringing bells at the big homes with three-car garages, handing out accusatory fliers and lambasting Garmone and his company's loans. Before departing, they left their calling card — thousands of 2 1/2-inch plastic sharks — flung across Garmone's frozen flower beds, up into the gutters, littering the doorstep.

You want the REALLY big debt bomb that is about to explode, pouring fuel on the banking panic fire? It's the "negative amortization" loan timebomb

These "PayOption ARM" loans quite frankly shouldn't have been legal, and if they were, they shouldn't have been made because nobody should have been stupid enough to buy the debt.

They allowed the sucker (or mortgage fraudster) to pay no principal, and less interest than what was due. And every month the idiot didn't pay up, the balance grew and grew and grew some more. What a deal! Until house prices crashed, and now nearly every one of these loans will go bad as the debtors simply walk away.

And just to make this "innovative financial product" one of the worst financial products ever invented, GAAP allowed the holding bank to recognize the shortfall in what was owed every month as NONCASH INTEREST INCOME.

You got it folks, when the homedebtor didn't pay the amount due, the bank could recognize the shortfall not as bad debt, but as FU*KING INCOME, making the banks who held the cancer look good (for awhile) and their management earned massive bonuses.

Yes, the world went mad. And now we all pay the price.

HP'er Extra Credit - go do some digging around and see what banks are holding this cancer. I saw reports that WaMu had $67 billion of these turds and Countrywide had $35 billion - and of course were recognizing income for the payment shortfalls. I'd like to know where banks stand today. And invest accordingly!

In finance, negative amortization, also known as NegAm, occurs whenever the loan payment for any periodic is less than the interest charged over that period so that the outstanding balance of the loan increases. As an amortization method the shorted amount (difference between interest and repayment) is then added to the total amount owed to the lender.

Accounting For Negative Amortization
Accounting for negative amortization is a perennial favorite amongst those who follow banks and thrifts with large Option ARM portfolios. It outrages a lot of folks that the neg am balances, which represent interest that has been earned but not paid, is considered noncash interest income.

BofA probably sobering up, realizing that Countrywide and Mozilo have every VD known to man, and there's NO WAY they'll end up buying 'em as announced

There's no way BofA ends up buying Countrywide as announced. No way. They'd be paying billions for something that will end up COSTING them tens of billions and legal nightmares for years and years to come.

Countrywide is every venereal disease known to man. And sure, it's closing time at the bar, but BofA is probably sobering up a bit now and Angelo ain't lookin' too good. Man, they should have just called their buddy HousingPANIC. We'd have taken those beer gogs off of 'em and got 'em home no damage done. Oh well, live and learn.

I'd love to see the look on Angelo's face when BofA tells him that instead of $4 billion and a huge package on the way out for The Orange One they're now offering $1, Angelo gets a new bottle of spray-on tan at most, and even then they're not quite sure they'll still go through with it.

Doubts Over Deal Hit Countrywide Shares

Countrywide Financial Corp. shares dropped nearly 10% Friday amid growing investor fears that Bank of America Corp. could walk away from its agreement to acquire the struggling home-mortgage lender.

You've read a lot about the subprime meltdown and billions in writeoffs. But you haven't heard boo about "second mortgages". You will.

Get ready.

This next wave of debt-bombs are set to go off all over America. The wildly-popular "80/20" loans allowed the AAA-rated 80's to get sold off to CDO-land and to Fannie and Freddie to investors who thought the buyer was putting 20% down, and the higher interest no-collateral 20's got sold off too, but to who knows who.

And millions also took out "Seconds" in order to fund their over-spending these past few years. What happens to these loans now that the equity they were based on has disappeared? Man, ya gotta wonder if BofA knows the all the crap they just stepped into.

Here's a few juicy tidbits on Seconds:

The loan bomb
Other troubling arrangements are the 80-20 loans - a combination of a first and second mortgage to cover 100 percent of a home's price. The rate on the first mortgage may or may not be adjustable, but in almost all cases the rate on the second mortgage is set to shoot way up.

Straight Talk on the Mortgage Mess from an Insider
Sub-prime aren’t the only kind of loans imploding. Second mortgages, hybrid intermediate-term ARMS, and the soon-to-be infamous Pay Option ARM are also feeling substantial pressure.

The ’second mortgage implosion’, ‘Pay-Option implosion’ and ‘Hybrid Intermediate-term ARM implosion’ are all happening simultaneously and about to heat up drastically. Second mortgage liens were done by nearly every large bank in the nation and really heated up in 2005, as first mortgage rates started rising and nobody could benefit from refinancing. This was a way to keep the mortgage money flowing.

Second mortgages to 100% of the homes value with no income or asset documentation were among the best sellers at CITI, Wells, WAMU, Chase, National City and Countrywide.

France 1789. America 2008. Louis XVI. Angelo Mozilo. When will we hear chants of "OFF WITH THEIR HEADS!!!"?

Mozilo shouldn't just be worried about the SEC. He shouldn't just be worried about irate laid-off Countrywide employees. He shouldn't just be worried about CFC shareholders who lost everything. He shouldn't just be worried about the thousands and thousands who got pushed into toxic loans so he could earn higher commissions. And he shouldn't just be worried about his future boyfriends in jail.

No, with his level of naked greed and corruption, he and others in the REIC and government should now be worried about the guillotine. Now we just need a Robespierre.

The good news is that the prosecutors were able to seize Bernie Ebbers assets and ill-gotten-gains during his downfall, and I hope that they'll be able to do the same with The Orange One. This is just sick.

Lavish Payout, Perks for Failed Mortgage CEO - His Severance Package Includes Jet Use, Country Club Dues and a Hefty Payout

Angelo Mozilo, the co-founder and public face of troubled mortgage giant Countrywide, is eligible for tens if not hundreds of millions in compensation and perks on the sale of the company to Bank of America.

During calendar 2006, the latest period available for review in Securities and Exchange Commission filings, Mozilo took home $48.1 million in compensation. An early analysis of SEC filings by the Los Angeles Times suggests he could get upward of $115 million when he leaves after the sale is complete, despite the fact that the company tanked during the recent subprime mortgage crisis.

Immediately upon a change in control, Mozilo would get $13.3 million in accelerated vesting of stock grants, according to the terms of his 2004 compensation agreement, included in the company's latest proxy statement.

Should he leave the company after the firm's buyout, Mozilo would get a one-time cash payment of $88 million.

Countrywide avoids bankruptcy as BofA pays $4 billion (in stock) for a $1 company, probably so they could avoid losing billions more

The US learned from the UK Northern Rock debacle and avoided a massive bank run by orchestrating BofA's $4 billion all-stock takeover of lowly Countrywide and its epitome of executive corruption and greed, Angelo Mozilo.

Now ask yourselves, why would BofA pay $1 for a company that would have gone bankrupt if they hadn't? True, it's at over 80% off vs. its high, but still why pay billions for a company worth nothing (at best)?

Hmmmm.....

Maybe because if Countrywide went bankrupt, it would have cost BofA more than $4 billion?

It'll be interesting if this deal actually goes through. It might just be BofA looking to prop up the value of CFC as they dump shares. But if BofA buys it and it closes, then THEY own the CFC toxic loans that NOBODY will buy and which have NO value on the open market. Can you say BofA write-down? And mark my words, this one will cost BofA CEO Kenneth Lewis his job, even though he'll be laughing all the way to the bank.

Bank of America saves Countrywide from bankruptcy

Bank of America has saved Countrywide, one of the major players in the sub-prime mortgage crisis, from bankruptcy.

It announced this morning that is has agreed to buy America's biggest mortgage lender for around $4bn (£2.05bn) in stock.

The lender is widely viewed as one of the main culprits behind America's sub-prime mortgage crisis. It was a leader in peddling loans to low-income home buyers and is under investigation by US prosecutors for allegedly misleading customers about repayment commitments.

Two words of advice for Bank of America regarding Countrywide Toxic Mortgage: Due Diligence

Also make sure your folks use disinfectant after shaking hands with The Orange One.

Seriously though, it should be painfully obvious to the B0fA auditors that the "assets" on CFC's books are worth nowhere near what Countrywide says they are.

They made loans to liars. They called them "liar's loans". They ain't getting paid back. And Countrywide if left alone would simply go bankrupt.

Why BofA would want to pay more than $1 for CFC is beyond me. And I doubt they, or anybody else, will.

BofA - haven't you already lost enough on your stupid and reckless Countrywide mistake already? You blazing idiots - we told you a few months ago you were going to get the CFC VD if you took Angelo home for the night and you went ahead and did it. And now you're looking to marry him? Man, some guys are hopeless. Unless there's a shotgun involved, this marriage makes no sense. Sounds like a classic pump and dump to me!

NEW YORK, Jan 10 (Reuters) - Bank of America Corp is in advanced talks to buy struggling Countrywide Financial Corp, the largest U.S. mortgage lender, several people familiar with the matter said on Thursday.

Angelo Mozilo, its co-founder and chief executive, has been a lightning rod for critics who say he encouraged loose lending practices that contributed heavily to the housing crisis.

Mozilo has also been faulted for collecting hundreds of millions of dollars in compensation this decade from pay, bonuses, awards and stock options, including millions of dollars after it was clear the housing crisis had begun. In July, he called the slump the worst since the Great Depression.

Bank of America in August bought $2 billion of Countrywide preferred shares convertible into a roughly one-sixth stake in the lender.

Na na-na na-na na na-na na-na ah slow down, you're gonna craaaaaaaaaash

U.S. stocks back in red after Countrywide stumble
Nasdaq Composite poised to extend losing streak into an eighth session

NEW YORK (MarketWatch) -- U.S. stocks fell sharply Tuesday as Countrywide Financial Corp. denied bankruptcy speculation and AT&T Inc. pointed to softness in its broadband and phone line business, pushing the Nasdaq Composite into an eighth day of losses.

"The financials are dragging everything down. This is the largest mortgage originator in the country, trading like it wants to go out of business," said Peter Boockvar, equity strategist at Miller Tabak.

HP'ers victory is nearly ours as Countrywide Toxic Mortgage teeters on the verge of bankruptcy (AND IF YOU HAVE MONEY IN COUNTRYWIDE GET IT OUT NOW!!)

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."