Countrywide Financial tells judge it 'recreated' letters-NYT

Could this be the Enron moment?

Share price down 16%

[*Countrywide Financial tells judge it ‘recreated’ letters -NYT * (Countrywide Financial tells judge it 'recreated' letters -NYT - MarketWatch)

And it appears it may shortly be filing for bankruptcy. It’ll be an amazing moment in the history of the US bubble if the biggest mortgage lender goes under.

Official candidate for Enron II ?

Speaking of which, there were two stories on Bloomberg about the rumours of Countrywide filing for chapter 11. Both have been pulled! Anyone know how to look in cache to find them?

Countryside is a giant fraud engine, it fraudulently generated utterly vast amounts of securitisable cack for wall st and fraudulently lied to its victims ( sorry thats customers) to get their signatures on paper.

Now they have admitted their machinations to a court the end is indeed nigh

bloomberg.com/apps/news?pid= … refer=home

Enron 2 is a most apt analogy for this corrupt bunch of fraudsters. Gone by the end of the month, almost nothing can be saved .

Google might not have had the chance to cache them if they weren’t up for long.

still there

bloomberg.com/apps/news?pid= … refer=home

and

bloomberg.com/apps/news?pid= … refer=home

Countrywide Loses Most Since 1987 on Bankruptcy Bets (Update2)

By Jeff Kearns and Lynn Thomasson
Enlarge Image/Details

Jan. 8 (Bloomberg) – Countrywide Financial Corp. dropped the most in two decades on the New York Stock Exchange amid speculation the largest U.S. mortgage lender will file for bankruptcy.

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.‘’

Investors drove Countrywide shares down 79 percent last year on concern the lender was suffering from a cash shortage. The company tapped emergency credit lines and got a bailout from Bank of America Corp. as the worst housing slump in 16 years fueled bets that Countrywide might seek bankruptcy court protection.

Countrywide spokesman Rick Simon didn’t immediately return a call for comment today. Countrywide has said it has adequate liquidity to run its business and predicted in October that it will be profitable this year. The company posted its first loss in 25 years during the third quarter.

Countrywide shares declined the most since October 1987, losing $1.75, or 23 percent, to $5.89 as of 12:45 p.m. in New York. That was the lowest price since March 2000. Countrywide spurred a decline in financial shares, including an 18 percent drop by Ambac Financial Group Inc., and caused the Standard & Poor’s 500 Index to erase its gain for the day.

`Purely a Rumor’

``There’s some sort of rumor that they would go under, but it’s purely a rumor,‘’ said Thomas Garcia, head of trading at Thornburg Investment Management, which oversees about $50 billion in Santa Fe, New Mexico.

Credit-default swaps tied to Countrywide’s debt soared to a record as investors demanded 30 percent upfront and 5 percent a year to protect from a Countrywide default for five years, according to broker Phoenix Partners Group in New York.

Yesterday, investors were demanding 20 percent upfront and 5 percent a year. Contracts trade on upfront payments when the market sees a high risk of default.

Options traders increased bets that the stock will slide as much as 67 percent from yesterday’s close before this month’s contracts expire on Jan. 18. The number of put options traded rose to 147,221, almost four times the 20-day average, and bearish bets outnumbered bullish ones, or calls, by more than 2- to-1.

The most-active contracts, January $5 puts, surged more than sixfold to 65 cents. January $2.50 puts, the third-most traded, rose sixfold to 20 cents.

`Panic Buying’

That's panic buying in options,'' said Peter Dunay, who oversees $160 million including options as chief investment strategist at Leeb Capital Management in New York. People are definitely speculating that Countrywide could be going much lower.‘’

Countrywide’s implied volatility, the key gauge of options prices, surged to a record 253.34 percent. An increase indicates traders anticipate bigger swings in the stock price.

Ambac, the second-largest bond insurer, lost $4.19 to $19.29 on the NYSE. The S&P 500 Financials Index retreated 2.3 percent to 362.17, the lowest since December 2003.

To contact the reporters on this story: Jeff Kearns in New York at lthomasson@bloomberg.net .
Last Updated: January 8, 2008 12:58 EST

An hour at most.

CFC is trading at around 6.80 down from a 12 month high of 45.76! (Down 10% on the day).

Not on the plebs front-page - have you got premium access 2Pack?

There is now this:
bloomberg.com/apps/news?pid= … refer=home

Revised again

Countrywide Loses Most Since 1987 on Funding Wagers (Update3)

By Jeff Kearns and Lynn Thomasson

Jan. 8 (Bloomberg) – Countrywide Financial Corp. dropped the most in two decades in New York trading on speculation that it needs cash to continue operating its mortgage business.

The country’s largest home-loan lender pared its loss after denying speculation it will file for bankruptcy.

Countrywide shares declined the most since October 1987, losing $1.03, or 13 percent, to $6.61 in 1:46 p.m. New York Stock Exchange composite trading. Earlier, they tumbled 25 percent.

Investors drove Countrywide shares down 79 percent last year on concern the company was suffering from a cash shortage. The company tapped emergency credit lines and got a bailout from Bank of America Corp. as the worst housing slump in 16 years fueled bets that Countrywide might seek bankruptcy court protection.

Traders said Countrywide shares declined today on the prospect that tighter credit restrictions will drive the Calabasas, California-based company into Chapter 11.

``There is no substance to the rumor that Countrywide is planning to file for bankruptcy,‘’ spokesman Rick Simon said in a statement. Countrywide has said it has adequate liquidity to run its business and predicted in October that it will be profitable this year. The company posted its first loss in 25 years during the third quarter.

Credit-default swaps tied to Countrywide’s debt soared to a record as investors demanded as much as 30 percent upfront and 5 percent a year to protect from a Countrywide default for five years, according to broker Phoenix Partners Group in New York.

Yesterday, investors were demanding 20 percent upfront and 5 percent a year. Contracts trade on upfront payments when the market sees a high risk of default.

Bank of America, based in Charlotte, North Carolina, slumped 2.5 percent to $38.92, the lowest since December 2003. It made a $2 billion preferred-stock investment in Countrywide in August, and has the right to convert those shares into common stock at $18 each.

To contact the reporters on this story: Jeff Kearns in New York at lthomasson@bloomberg.net .
Last Updated: January 8, 2008 13:56 EST

This line is missing from the further updates:
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.‘’

Guess which Bloomberg reporters won’t be on Mr Mainwald’s Christmas card list.

CFC now down 25% again.

Have you ever seen Angelo Mozilo, the CEO of Countrywide?

https://www.newyorksocialdiary.com/partypictures/2006/08_02_06/images/abt/Angelo-Teri-and-Eric-Mozilo.jpg

That’s him on the left.

Dude looks like he should be working for Tony Soprano.

As Dealbreaker puts it:
“We like to think of ourselves as “with the little guy”-type people (Steve Schwarzman, 5’6”, Ron Blarney, 4’10”) but in this case we will make an exception: if you’re too stupid to realize there’s nothing about the face of Mystic Tan Man that doesn’t say “I will screw you for a dime,” you deserve to find yourself in foreclosure."

He does bear a certain resemblance to this smilie :smiling_imp:

thats because their share price is so low that bankruptcy is academic now.

They will be gone by friday, latest.

Who was their auditor 8) , start shorting !!!

Who do they owe money to, apart from BoA? Who’s holding their toxic CDOs? Start shorting all those folks too! (I use “folks” in the GWB “evil terrorist” sense).

Rentaquote back on song at Bloomberg . The Credit Default Swaps are getting more expensive as the stock sinks by the hour.


Countrywide Loses Most Since 1987 on Funding Concern (Update4)

By Jeff Kearns and Lynn Thomasson

Jan. 8 (Bloomberg) – Countrywide Financial Corp. dropped the most in two decades in New York trading on speculation that it needs cash to continue operating its mortgage business.

``There’s some sort of rumor that they would go under, but it’s purely a rumor,‘’ said Thomas Garcia, head of trading at Thornburg Investment Management, which oversees about $50 billion in Santa Fe, New Mexico.

Investors drove Countrywide shares down 79 percent last year on concern the company was suffering from a cash shortage. The company tapped emergency credit lines and got a bailout from Bank of America Corp. as the worst housing slump in 16 years fueled bets that Countrywide might seek bankruptcy court protection.

``There is no substance to the rumor that Countrywide is planning to file for bankruptcy,‘’ spokesman Rick Simon said in a statement. Calabasas, California-based Countrywide has said it has adequate liquidity to run its business and predicted in October that it will be profitable this year. The company posted its first loss in 25 years during the third quarter.

Countrywide shares declined the most since October 1987, losing $2.26, or 30 percent, to $5.38 in 3:24 p.m. New York Stock Exchange composite trading. They sank to the lowest price since May 1996.

Credit-Default Swaps

Credit-default swaps tied to Countrywide’s debt soared to a record as investors demanded as much as 30 percent upfront and 5 percent a year to protect from a Countrywide default for five years, according to broker Phoenix Partners Group in New York.

Yesterday, investors were demanding 20 percent upfront and 5 percent a year. Contracts trade on upfront payments when the market sees a high risk of default.

Bank of America, based in Charlotte, North Carolina, slumped 3.2 percent to $38.64, the lowest since December 2003. It made a $2 billion preferred-stock investment in Countrywide in August, and has the right to convert those shares into common stock at $18 each.

Options traders increased bets the stock will slide as much as 67 percent from yesterday’s close before this month’s contracts expire on Jan. 18. The number of puts traded rose to 339,094, almost nine times the 20-day average, and bearish bets outnumbered bullish ones, or calls, by nearly 3-to-1. The most- active contracts, January $5 puts, surged eightfold to 80 cents.

That's panic buying in options,'' said Peter Dunay, who oversees $160 million including options as chief investment strategist at Leeb Capital Management in New York. People are definitely speculating that Countrywide could be going much lower.‘’

To contact the reporters on this story: Jeff Kearns in New York at lthomasson@bloomberg.net .
Last Updated: January 8, 2008 15:27 EST

Watch it in real time - finance.yahoo.com/q?s=cFC

CNBC has a nice app that shows the major holders of a share:
cnbc.com/id/15837275/site/14081545/?q=cfc