FLASH: Bear Stearns on verge of failure - emergency bailout by Fed underway. HP calls for the arrest of Bear CEO Alan Schwartz for false statements

Now things are getting interesting...

I'd like to see the crap toxic mortgage CDO's the US taxpayer via the New York Fed just bought.

Oh, wait, no, I really WOULDN'T like to see the crap toxic mortgage CDO's the US taxpayer just bought.

This one's not surprising, but what is amazing (and illegal) is that Bear's CEO Alan Schwartz put out these false and misleading statements this week:

Exhibit A: "Our balance sheet has not weakened at all," he said. "We don't see any pressure on our liquidity."

Exhibit B: "We don't see any pressure on our liquidity, let alone a liquidity crisis"

Exhibit C: "there is absolutely no truth to the rumors of liquidity problems that circulated today in the market"

COME ON MAINSTREAM MEDIA - GET ON THIS STORY LIKE FLIES ON SH*T. THE US TAXPAYER IS BEING ROBBED IN THE NIGHT AND YOU LAZY BUMS DO NOTHING!!!

JPMorgan Chase, With Federal Reserve Bank of NY, to Provide Funding to Bear Stearns

NEW YORK (AP) -- The federal government and JPMorgan Chase & Co. teamed up on a bailout of Bear Stearns Cos. on Friday, a last-ditch move to save the investment bank, which acknowledged its dire financial straits after a week of firm denials.

Bear Stearns lost half of its value within 30 minutes of the market open.

While it was not clear exactly how much money Chase would pump into Bear, a person familiar with the bailout, who spoke on condition of anonymity because the talks are private, said Chase may end up buying Bear Stearns outright.

Here's thestreet.com staffers mocking Orangelo Mozilo of Countrywide Toxic Mortgage, and some more negative press today

Funny video at thestreet.com. Wish I could embed it but here you go.

How's Angelo Mozilo going to spend that $100 million?

"Tanning - he's gonna go tanning"
"I believe he's putting it in Countrywide CD's"
"He's buying nothing but Crystal!"
"I'm pretty sure he'll contribute his earnings to the Ron Paul Presidential campaign"

Lots of great negative press on The Orange One in the MSM today. Glad they're paying attention now.

CNBC: Countrywide's Mozilo: Was He "Wrong" To Sell Stocks?
International Business Times: Countrywide (CFC) CEO the Next Martha Stewart?
NY Post: COUNTRY-FRIED - COUNTRYWIDE BIZ SINKS AS MORALE HITS LOW

Yes, like Mozilo I'm short CFC

Why is Countrywide possibly going bankrupt? Well, for starters, they're now have $2.5 BILLION in "Countrywide-Owned Homes" and growing

Here's three ugly charts - Mozilo 2007 stock dumping, CFC stock price last 90 days (I'm short CFC) and "Countrywide-Owned Home" inventory since January. Anyone see any trends?

Oh dear god, does Orangelo have a mess on his hands. Nice move dumping hundreds of millions in CFC shares before he ENRON'ed, eh? Here's the full list at Angelo's "Properties Owned by Countrywide" page.

Anyone wanna guess how many BILLIONS of dollars of taken-back homes Countrywide (and their partners and receivers) will end up with when it's all said and done? And anyone want to guess if CFC had to mark to market what these homes are REALLY worth today? Someone do us a favor and get a hold of Countrywide on one of these and see what % off they're willing to go!

Wow. Nice work Angelo. Great business ya got there. Sucker born every minute.

Hattips to themessthatgreenspanmade and countrywide-foreclosures for the data...

FLASH: As predicted here 48 hours ago, down-and-out toxic mortgage lender Countrywide Mortgage laying off 10,000 to 12,000 (for starters)

Tomorrow's news today here at HP... And hey, it's Friday night, time the mortgage lenders, banks and builders put out the REALLY bad stuff... (note - yes, of course, I'm short CFC)

This one was easy HP'ers. Next comes the multi-million (if not billion) dollar financial restatement as their auditors demand Orangelo "marks to market" the crap on his books. But only 12,000 Angelo? Sorry to say, but 61,000 are actually at risk, as this toxic business struggles to stay afloat (now that Angelo has cashed out). Maybe he can chip in for their severances with his ill-gotten gains.

Question though Angelo: With 12,000 less employees, who'll manage the lines of people streaming into your Countrywide offices looking to get their deposits back?

Countrywide Plans to Cut As Many as 12,000 Jobs

Countrywide Financial Corp. is expected to announce plans to reduce its work force over the next three months by 10,000 to 12,000 jobs, representing as much as 20% of the current total.

The largest U.S. home-mortgage lender also expects that its loan originations in 2008 will be about 25% lower than this year.

FLASH: And today, for all the world to see (including the SEC), we see why Countrywide Mortgage's Angelo Mozilo was dumping shares like rotten oranges

I hope some of you were short Countrywide. HP'ers saw this car crash coming a mile away. Next up - IndyMac.

Yes, I'm short IMB and CFC, and it was all so obvious now. Mozilo is laughing all the way to the bank, but we all know you can't take your money to jail... Good luck Orange Man with the gotta-be-coming-soon SEC investigation.

Countrywide quarterly profit tumbles; shares off 7%
Subprime problems spread to top-rated mortgages, lender says

NEW YORK (MarketWatch) -- Countrywide Financial Corp. reported a 33% drop in second-quarter net income on Tuesday and signaled that problems in the subprime mortgage market have spread to the highest-quality home loans.

The warning pushed Countrywide shares down more than 7%, to their lowest level in almost two years. It also weighed on the broader stock market because investors have been waiting to see if credit problems in the subprime-mortgage sector would spill over into higher-rated, or "prime" home loans.

"The company incurred increased credit-related costs in the quarter, primarily related to its investments in prime home-equity loans," CEO Angelo Mozilo said in a press release detailing Countrywide's second-quarter financial results.

Countrywide's second-quarter net income fell 33% to $485 million, or 81 cents a share, down from $722 million, or $1.15 a share, earned a year earlier, on softening home prices.

Further dampening enthusiasm, Mozilo commented: "During the quarter, softening home prices continued to affect many areas of the country and delinquencies and defaults continued to rise across all mortgage product categories as a result."

FLASH: Subprime king Countrywide (hello Sarbanes-Oxley) finally comes clean, says it may face "earnings volatility". You don't say!

I think there are now grounds to open an SEC investigation for insider stock dealing, stock manipulation and false statements at Countrywide.

Just last week Angelo Mozilo had Countrywide's CFO marched out to proclaim how happy days were here, and how Countrywide was a "top-conditioned athlete", even though they knew subprime is in 100% meltdown mode, 19% of their subprime loans are already delinquent, and the disease has likely spread to their Alt-A portfolio.

Well, now today, possibly because of the advice of legal council, Countrywide started coming clean just a bit. Or maybe Mozilo and the corrupt insiders at CFC finally sold through the shares they had available to dump.

Note: Like Mozilo and the CFC insiders, I'm betting the stock will continue to free-fall and am short CFC. Oh, anyone see NEW is off another 50% today, down 95% in the past six weeks? Nah, no problems in subprime. None at all.

NEW YORK, March 12 (Reuters) - Countrywide Financial Corp., the largest U.S. mortgage lender, on Monday said it has minimal exposure to nonprime mortgages, but may still experience fluctuating earnings in the near term due to turmoil in the U.S. subprime market.

The company said it was tightening its underwriting standards, adding that nonprime loans were only 7 percent of its funding volume in February.

Countrywide said it should benefit from competitors exiting the market. But the company may experience some short-term earnings fluctuations as difficulty in the subprime market cut into the amount of money it generates from selling loans to investors, and the value of the loans it hangs onto.

The lender also said it made $35 billion in mortgage loans in February, up 10 percent from a year earlier but down from January.

Countrywide said loans to less creditworthy borrowers fell to $2.6 billion from $2.8 billion a year ago.