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.
15 comments:
Remember back when they reported the 2007 Q3 losses and said they expected to make profits going forward?
He's got to pay for gas too, cut him some slack.
Yet if he tried to take a 10 dollar bill out of the pocket of the typical "low information voter" they would kick his ass!
Does anyone else see how irrational and stupid "The People" are?
And? He made a ton of money. Lots of people do. Why do you care so much?
Here's another tidbit:
Defaults Rising Rapidly
For 'Pick-a-Pay' Option Mortgages
By RUTH SIMON
April 30, 2008
(Wall Street Journal)
On Tuesday, Countrywide Financial Corp. said that 9.4% of the option ARMs in its bank portfolio were at least 90 days past due, up from 5.7% at the end of December and 1% a year earlier. Countrywide also reported that it had charged off $125 million of these loans in the first quarter, compared with $35 million a quarter earlier. Bank of America Corp. said last week that it will stop making option ARMs altogether after it completes the acquisition of Countrywide Financial, which in recent years has been the largest originator of these loans.
from market ticker.
"Here's another prediction - BAC is intending to use CFC as a "dumping ground" for its toxic waste, will keep the firm as a wholly-owned sub so it is legally distinct, will dump their trash in there and then BK the "subsidiary" with some swansong about how things were suddenly "worse than anticipated", keeping the servicing platform."
http://market-ticker.denninger.net/2008/04/caution-mortgage-explosions-just.html
CFC spent $4 BILLION on stock buybacks to prop up share prices while insiders were dumping their stock hand over fist. Nobody can say they weren't warned. This took place over an 8 month period and there were many rallies where the longs could have sold.
Is he trying to do the Vulcan "live long and prosper" salute?
HANGING HIS ORANGE ASS BY HIS TIE WOULD BE TOO GOOD FOR THAT SCUM!
DOPES!
Yet if he tried to take a 10 dollar bill out of the pocket of the typical "low information voter" they would kick his ass!
Does anyone else see how irrational and stupid "The People" are?
What would you do if people tried to take a $10 bill out of your pocket? Do you walk around handing money out to people?
Do you see how irrational and stupid "You" are?
I still can't get over the fact that some beautiful women have had to have sex with that lizard of a man. GROSS!!!
Can't we all just retire to our respective corners, load firearms, and come out swinging? Let the best, worst, happiest, saddest, prettiest, ugliest, whatever, win, lose, draw.
What is Mozilo saying in that picture?...Cash in the right hand please.
Angelo--
I hear he is hung like a mouse...and yes, it's orange too....
Ewwwwwwwwwwwwwww--Kidding everyone!
...and yet B of A sees Coutrywide as that "sure thing" at the end of the bar.
Skanky, yes. Full of open sores, yes.
...but B of A is one liquored up sailor and it'll take the chance.
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