T-minus ? until Countrywide goes under.. . .

NEW -> Contingent Buyer Assistance Program
More on the job cuts at CW





<a href="http://biz.yahoo.com/ap/070907/countrywide_job_cuts.html?.v=6">biz.yahoo.com/ap/070907/countrywide_job_cuts.html</a>





Quote:





The Calabasas-based company said it intends to keep transferring its residential lending business into its Countrywide Bank unit as a way to strengthen its access to funding.

<p>Almost all of its residential lending activity will be originated through the bank by the end of this month, the company said.</p>




Isn't this the same Countrywide Bank that was not large enough to take advantage of the Fed's giveaway of money a couple of weeks ago? How many loans can that entity support? How many jobs will have to be shaved off?
 
CFC down to $17.45 as I write. .. . I wonder if BAC is waiting for the Fed to cut rates. It seems to me that if everyone is so certain that the Fed is going to cut, BAC should get in on CFC now.





Washington Mutual is being killed as well. .. . down to $34, only 3 dollars above the 52 week low. . ..





<a href="http://www.marketwatch.com/news/story/investor-buys-bear-stearns-stake/story.aspx?guid=%7BE8858885%2D3572%2D4E75%2DB5EE%2D6A5ACCF5867B%7D&siteid=yhoof">www.marketwatch.com/news/story/investor-buys-bear-stearns-stake/story.aspx</a>
 
CFC @ $17.15. What I don't understand is that if I don't want to buy CFC @ $17.15, why would BAC? As far as I know, BAC cannot buyout CFC, seperate the profitable servicing biz, and then disgorge the rest without paying off all the debt. What am I missing? Why does everyone assume BAC will buy CFC? CFC does not look like such a good deal to me.
 
I don't think BAC is interested in the company or its common stock.





IMO, BAC is just positioning itself to take the servicing business. If CFC goes under, the bondholders will want to sell the servicing business as an asset to recoup their losses. Who is going to bid on this asset? One of the primary bidders would by BAC. They are one of the few banks big enough to do it, and they have a need for it.





By positioning themselves in a preferred stock position, they become the next in line to acquire the asset should the bondholders fail to make a deal. This should increase their leverage in a negotiation with the bondholders. Basically, the bondholders will either sell it to them or give it to them, unless of course another viable bidder comes in to purchase this asset.





BAC is betting they will be the only game in town when it comes time to dispose of this asset and by positioning themselves this way, they can reduce the price they pay for the asset.
 
<p>All too easy...</p>

<p>http://www.reuters.com/article/marketsNews/idUKN1030940720070910?rpc=44&sp=true</p>

<p>http://www.housingtracker.net/old_housingtracker/location/California/LosAngeles/</p>
 
<p>Well another day and another 5% down. Close will be low 17`s. At this rate of 5% a day it will wither away in a matter of weeks not months. Look out again for the NIKKEI 225 futures. Down 360. Thats not a good sign for tomorrow at all either. Still seeing all the ads on the internet and TV. When those stop that will be the patient no longer able to breath. Downgrades on the bonds and 12,000 in the layoff. The news is just getting so ugly for this company. </p>
 
I guess we're not the only ones who is down on CWC





<a href="http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/09/10/financial/f135121D50.DTL&type=business">www.sfgate.com/cgi-bin/article.cgi</a>


Investors cut stakes in Countrywide

"Two of Countrywide Financial Corp.'s largest shareholders have cut their stakes in the struggling mortgage lender that has slashed jobs and borrowed billions of dollars to stay in business, according to regulatory filings Monday."
 
We have hit $16.60. . . the countdown is speeding up. Looks like B of A's 2 Bil and the 11.5 bill from a couple of weeks ago were simply delaying the inevitable.





<a href="http://money.cnn.com/2007/09/11/news/companies/countrywide/index.htm?source=yahoo_quote">money.cnn.com/2007/09/11/news/companies/countrywide/index.htm</a>





Back to square one for CW.
 
AB and Barclays are probably relieved to get out at this price. So the volume looks to be them selling. The market is up and CFC is still dropping ??? BK is going to be the only way to save this company if its burning cash this fast. Looks like no Rate Cut today either. Going to figure another 5% drop today into the low teens and down we go........
 
good money after bad....can you say dilution or delusion?

COUNTRYSLIDE

MORTGAGE LENDER'S SHARES PLUNGE; SEEKS 2ND BAILOUT

<p>http://www.nypost.com/seven/09112007/business/countryslide.htm</p>
 
<em>Paulson and Mozilo, together at last…</em>

This morning, Paulson met with Mozilo, Wells Fargo, CitiMortage, Inc. and JP Morgan Chase to offer his stunning observations on the economy:

"We have been experiencing market turbulence and as I have said for awhile, it is going to take some time to work its way out," Paulson told the finance officials at a meeting at the Treasury Department. "We are going to work our way through this, in some markets more quickly than others."

Paulson said that "we are already seeing signs of improvements in a number of markets that have been experiencing stress."

But he said it was going to "take longer to work through the problems in the subprime market," noting that there are a number of loans in this market that are scheduled to reset at sharply higher mortgage payments over the next two years.
 
<p>Conversation off camera:</p>

<p>Paulson: You effen idiot, look what you've done ! Now I have to spin this bit*h like no tomorrow.</p>

<p>Mozilo: "I am not responsible for the housing bubble".</p>

<p>Paulson: Shut the F*ck up.</p>
 
Did anybody ask Orangzillo if there was any truth to the rumors that Countrywide did not issue 1099 to it's brokers? Whatever he did say, did not seem to help CFC stock much.
 
<p>It is <strong>so unfair</strong>. Orangzillo just can not get a break.</p>

<p>http://money.cnn.com/2007/09/12/real_estate/countrywide_employee_suit.ap/index.htm?postversion=2007091213</p>
 
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