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

NEW -> Contingent Buyer Assistance Program
<p>Trooper</p>

<p>I have some CD`s at this small regional bank.</p>

<p><a href="http://www.calnationalbank.com/personal-banking/">http://www.calnationalbank.com/personal-banking/</a></p>

<p>We moved out of Wachovia after they bought my regional Western Financial Bank. I like the smaller banks far better than the Big Guys.</p>

<p> </p>
 
Thx bltsrv, but again...I'm limited in choices with my deferred comp acct. The only CD's that were offered were ALL from Wamu... ranging from 1 to 5 yrs.
 
I buy T-Bills and T-Bonds through Schwab so I don't have to worry about the safety of my principal, they are the safest of all possible "riskfree" investments. I don't buy CDs anymore although through Schwab you can also buy CDs in $100k increments from different banks and just have one statement.
 
if you plan on a bank I still do things at Wells Fargo. They have not gotten as caught up in this mess as some others. Their premier product in 04-07 was a 10 year fixed to ARM so their explosions are still a few years away and may just work out over time. Stock is at a low but not like WM. Chase is another choice
 
<p>Not to throw more gas on the fire buy....</p>



SEC starts inquiry of WaMu

Federal panel to study mortgage lending practices



<p>http://seattlepi.nwsource.com/business/344429_wamu21.html?source=mypi</p>
 
<a href="http://money.cnn.com/2008/01/09/news/companies/bofa_countrywide.fortune/index.htm?section=money_mostpopular">Bank of America's Countrywide trap</a>





Best part (by far):





"...Countrywide CEO Angelo Mozillo, <strong>known for his perpetual tan and wide grin</strong>..."
 
<em>Market giants such as Countrywide have lost nearly all respect in the financial community. And then there are the more than </em><a title="212 lending" target="_blank" href="http://ml-implode.com/"><em>212 lending</em></a><em> companies that have met their end since late 2006. </em>

<p><em>The question for the remaining mortgage companies isn't about when the industry will turn the corner; it's more along the lines of, "Will you still open your doors tomorrow?" </em></p>

<p><a href="http://www.fool.com/investing/dividends-income/2008/01/09/rumors-send-countrywide-to-the-chopping-block.aspx">Rumors Send Countrywide to the Chopping Block</a></p>

<p>or if that doesn't work <a href="http://www.fool.com/investing/dividends-income/2008/01/09/rumors-send-countrywide-to-the-chopping-block.aspx">http://www.fool.com/investing/dividends-income/2008/01/09/rumors-send-countrywide-to-the-chopping-block.aspx</a></p>
 
Can anyone explain how the FDIC insurance thing actually works if you have money deposited in a Savings Account or CD with a bank like Countrywide that files for BK? How long does it take to get paid out and how much effort is involved?
 
<p>jamlen-</p>

<p>From the <a href="http://www.fdic.gov/deposit/deposits/deposit/faqs/index.html">FDIC FAQ Site</a></p>

<p><strong>If a bank fails, what is the timeframe for payout of the funds that are insured if the bank cannot be acquired by another financial institution?</strong>


Federal law requires the FDIC to make payments of insured deposits "as soon as possible" upon the failure of an insured institution. While every bank failure is unique, there are standard policies and procedures that the FDIC follows in making deposit insurance payments. It is the FDIC's goal to make deposit insurance payments within one business day of the failure of the insured institution. Typically, a bank that has failed will be closed on a Friday. The FDIC will then work the weekend to complete deposit insurance determinations for most deposits and be prepared on Monday to either transfer the insured portion of a deposit to another FDIC insured institution or provide deposit insurance payment checks. (Note: Some deposits that require supplemental documentation from the depositors, such as accounts linked to a living trust agreement or funds placed by a deposit broker, may take a little longer. The timing of the completion of the deposit insurance determination is based solely on the depositor providing the documentation needed by the FDIC to determine insurance coverage.) </p>
 
jamlen, that's why i switched from CDs to T-Bills, I had $400K in four CDs (held in different ways like individual, wife's individual, joint tenancy and one other way I forgot) at Fremont last year because they had the highest yield, and worried when I learned they deep in the subprime sh*t, so when they matured I checked around and found out the safest riskfree asset would be T-bills (they don't need no stinkin' insurance because if they go bad then money would be the least of our worries), their yields are practically the same as CDs and it's way easy to buy them in my existing Schwab account.
 
<p>Bank of America's Countrywide trap</p>

<p>http://money.cnn.com/2008/01/09/news/companies/bofa_countrywide.fortune/index.htm?postversion=2008011007</p>
 
<p>They had NO choice</p>

Bank of America's Countrywide trap

The financial behemoth's $2 billion investment in the mortgage lender is disappearing fast. Too bad its options are limited.

<p>http://money.cnn.com/2008/01/09/news/companies/bofa_countrywide.fortune/index.htm?postversion=2008011007</p>
 
WOW. CFC is up 54% to $ 7.85 on the news about B of A and a "Merger". Lets see if they announce this afternoon or tomorrow. I got a feeling Mozilo will sign off and walk away while he still can without handcuffs on. The question is ? Whats going to be the "Buy" price for the shareholders ? $ 10.00 or less ?
 
Fly, DOW, fly! A rumor about one bank buying another horrible bank warrants triple digit gains!





This will help all the upside down homeowners! This will avert recession! This will make home prices increase!





Pop open the champagne!
 
<p>No, nude, LM meant every word.</p>

<p>There were some discussions on a thread at Calculated Risk about how servicing of paper which is really prime is different from non-prime loans. A poster who had worked collecting delinquent car loans and such at one point said his firm was paid something like 225 basis points to do so, and it wasn't enough, so they renegotiated to add another 25 bps. Countrywide is getting 50 plus 10. The fellow didnt think this was anywhere near enough to make any money. </p>

<p>Can these contracts be negotiated outside a bruptcy court?</p>

<p>Of course B of A was stupid enough to invest its billions in the first place, so I guess that it is stupid enough to want to merge. </p>

<p>I note my prediction (and many fellow posters) for Countrywide to go busto or merge appears to be likely. in the 2008 predictions thread.</p>
 
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