What do you think the breaking point is for CW? The bad news keeps rolling in, the market really isn't getting any better anytime soon. How long can they really hold on if it keeps up at this pace?
too much financial unknown. CW self insures its potential loss reserves and has underinsured potential defaults and everyone knows it!! Time to pay the piper.
The due dilligence on this or any bank buying a mortgage company is mind boggling. Look at any bank that bought a lender in 05-07- it was a waste of $$ and assets. Think BOA is looking back at $18 a share and saying WTF. They were sold a bag of sh#!
CW at an 8 year low. Miozzillo aside, I feel bad for the longtime CW employees that are seeing there CW stock plunge to Enron levels.
_________________ adversity builds character
Mtgbiz89 Demolition Man
Joined: 18 Dec 2007
Posts: 2207
Location: New England
Very scary.... article states more rumors about a Chapter 11 filing. Midnightrider...could not agree more. I know we need a "reset" term from one of Angryvoodoo's really great posts about debt. This is just painful to go thru....
U.S. Stocks Fall on Bank Finance Concern; Countrywide Plunges
By Michael Patterson
Jan. 8 (Bloomberg) -- U.S. stocks dropped, led by financial shares, after pending home sales declined more than economists forecast and speculation increased that Countrywide Financial Corp. faces a funding shortage.
``There's rumors around that they're going to file for Chapter 11,'' said Michael James, senior equity trader at Wedbush Morgan Securities in Los Angeles. ``That's taken most of the financial stocks down and it's taken the market down.''
Countrywide, the biggest U.S. mortgage lender, tumbled the most since October 1987. E*Trade Financial Corp., Ambac Financial Group Inc. and MBIA Inc. also plunged and dragged down a gauge of financial stocks in the Standard & Poor's 500 Index to a four- year low.
The S&P 500 slipped 1.1, or 0.1 percent, to 1,415.08 as of 12:18 p.m. in New York, erasing a 14-point advance. The Dow Jones Industrial Average fell 38.21, or 0.3 percent, to 12,789.28. The Nasdaq Composite Index lost 0.39 to 2,499.07.
Countrywide lost $1.31, or 17 percent, to $6.33.
``The rumor was they would file for Chapter 11 this week,'' said Michael Mainwald, head of equity trading at Lek Securities Corp. in New York. ``That spooked all the financials.''
Countrywide spokesman Rick Simon didn't immediately return a call for comment.
E*Trade, an online bank and brokerage, declined 45 cents to $2.38. Ambac, the second-biggest bond insurer, lost $4.28 to $19.19. MBIA, the largest, fell $2.50 to $15.12. The 92-member S&P 500 Financials Index lost 1.9 percent.
The National Association of Realtors' index of pending home sales decreased 2.6 percent to 87.6, following a 3.7 percent gain in October that was larger than previously estimated, the group said today in Washington.
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