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

NEW -> Contingent Buyer Assistance Program
[quote author="lawyerliz" date=1208304098]Didn't WaMu get a bunch of funding from somewhere? Putting off the day of

reckoning for a while longer.</blockquote>


Just like taking your maxed out charge card and rolling it over to another one.



They just doubled the number of shares outstanding.

http://www.sltrib.com/business/ci_8903972
 
Good money after bad....



NEW YORK, April 7 (Reuters) - U.S. private equity firm TPG

and other investors are near a deal to invest $5 billion in

Washington Mutual Inc WM, the Wall Street Journal reported on

its Web site, citing people familiar with the matter.

The other investors include large shareholders of the

Seattle-based lender and may also involve other buyout firms, the

Journal said, but noted that an agreement was yet to be

finalized.

According to the report, the investment looks like it could

be both a common- and preferred-stock offering, the report said,

adding that the preferred stock could be later converted to

common shares, subject to a shareholder vote.

Also, TPG is expected to get a seat on the company's board.

The U.S. government was not directly involved in shaping the

deal, though banking regulators were likely made aware of WaMu's

plans, the Journal said, citing sources familiar with the matter.

The plan sets aside the possibility of JPMorgan Chase JPM

potentially buying Washington Mutual at least for now
 
And the hits just keep on comin!!!



Countrywide Financial Corp. (CFC) swung to a first-quarter loss on $3.05

billion in credit-related charges, driven by higher levels of mortgage

delinquencies, defaults and losses.

The news sent shares down 2.9% to $5.66 in premarket trading Tuesday.

The troubled mortgage lender, set to be acquired by Bank of America Corp.

(BAC) in the third quarter, reported a net loss of $893.1 million, or $1.60 a

share, compared with prior-year net income of $434 million, or 72 cents a

share. The results mark Countrywide's third consecutive quarter of losses amid

write-downs, credit deterioration and continued illiquidity in the secondary

mortgage markets.

Credit-loss provisions, which rose tenfold from the prior year to $1.53

billion, made up half of the latest quarter's credit charges.

Revenue fell 72% to $678.9 million.

The mean estimates of analysts polled by Thomson Reuters were for earnings of

2 cents a share on $1.53 billion in revenue.

Delinquency rates of conventional loans, prime home-equity loans and subprime

loans all rose from the fourth quarter and prior year. Countrywide said 35.9%

of subprime loans were delinquent as of March 31, up from 33.6% in the fourth

quarter. The delinquency rate of conventional loans rose to 6.48% from 5.76%.

Net charge-offs, or loans the bank doesn't think are collectible, surged to

$606 million from $39 million in the prior year, representing 2.21% of average

investment loans. Nonperforming assets as a percentage of total assets soared

to 4.16% from 0.95%.

The lender's mortgage-banking operations swung to a loss of $552 million.

Loans produced in the segment fell 39%, while total company loans produced

dropped 42%.

The loan-servicing sector widened its pretax loss amid the credit-related

charges, including a $444 million write-down driven by worsening trends and

expectations for delinquencies and home prices and the resulting increases in

estimates of future defaults and credit losses.

Countrywide recorded its first annual loss in more than three decades last

year amid a surge in defaults and falling home prices. That performance - plus

a shrunken share price - forced it into the arms of Bank of America. Last week,

executives from Bank of America outlined new lending guidelines and a grant

program it will implement once the merger goes through, as Countrywide's

lending practices continue to be called into question.
 
Do you remember when the Tan Man promised a return to profitability

for the 4th Quarter last year. Now for the fist Quarter he loses almost

900 Million. Now there is a CEO who knows how to forcast his companies performance.



Just what BAC needs.
 
This has gotta sting....perhaps Tan Man will find GOD...the last refuge of a scoundrel

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axJXxSqeRVzI#



May 2 (Bloomberg) -- Bank of America Corp., the second- biggest U.S. bank, said it may <strong>not guarantee $38.1 billion of Countrywide Financial Corp.'s debt </strong>after taking over the mortgage lender, <strong>increasing the likelihood of a default. </strong>



``There is no assurance that any such debt would be redeemed, assumed or guaranteed,'' the bank said in an April 30 regulatory filing, adding that no decision has been reached. Investors had grown more optimistic the bank would back Countrywide debt, and Standard & Poor's said this week it may raise Countrywide's rating to match Bank of America's.
 
Oops...



<a href="http://www.thestreet.com/s/sp-cuts-countrywide-debt-to-junk/newsanalysis/banking/10415013.html">S&P;Cuts Countrywide Debt to Junk</a>



Edit: Wierd - I can't get the semicolon in my link title to go away...
 
...and the wheel falls off



NEW YORK (Dow Jones)--Bank of America Corp. (BAC) is highly likely to

negotiate a sharply lower price for Countrywide Financial Corp. (CFC), 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.

"<strong>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,</strong>"

Miller wrote.
 
BoA did thier job and drug it out another six months to let the air out - slowly.



I'd argue that since BearSterns went busto, Country Wide can now be allowed to fail. It's not like anyone isn't expecting it.
 
I am not so sure that Countrywide can be allowed to fail. There may be a number of credit default swaps written against Countrywide corporate bonds whcih may be a multiple of the actual number of bonds. And Countrywide may be the counterparty to CDSs which would have a value of $0 on someone else's balance sheet if CFC goes BK. That is why Bear Stearns was not allowed to go BK and it may be the same for CFC.
 
So, yeah, BoA is backing out of the buyout. Countrywide has a negative worth.



Awgee, I agree, the fed will step in again and buy their worthless paper...



What have we turned into socialist Russia now? Heck of a Job.
 
No. It would of never happened in Soviet Russia beacuse it has (or rather, had) regulation.



Ain't free market, deregulated, get the government off your back style capitalism great?



I mean, look at what deregulation did for the airlines!
 
Back under $ 5.00 again. Every time I think this Comapny is doomed it pulls another rabbit

out of its hat. The Tan Man is like a cockroach. He just keeps crawling no matter how many times you spray him with bad news. If the Equity keeps falling its the "Tell" that BAC is going to renegotiate the deal to $ 2.00 a share.
 
"So, yeah, BoA is backing out of the buyout. Countrywide has a negative worth. "



B of A is not backing out. Their goal is to be the number one home lender in the US and the acquisition of countrywide will do it for them. What they are debating is whether they will leave CW as an independent subsidiary (responsible for their own debt) or merge them entirely into B of A. Remember BAC only does prime loans for owner occupied or second homes. If they leave CFC as a subsidiary, they can now offer other loans and not be responsible for the debt. The Fed wants the merger to happen and if anyone is capable of making something of the mess that CFC is, it's B of A. Both BAC and CFC are up pretty good in after hours trading. Never underestimate what Wall Street knows.
 
BoA's waffling is a tip off they want the deal to fail. Either expect the US tax payer (Uncle Ben) to step in and buy all of their shitty loan paper OR the deal to fall through. BoA is too smart to buy that stinker, otherwise.
 
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