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

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bltsrv...is your friend still confident about CFC ?

CommentAuthorbltserv

CommentTime Nov 17th 2007

I had lunch a few days ago with an old friend that is a consultant for Country Fried. Basically it seems the fix is in. There is no way under the current "political" situation that this company is going to be allowed to fail. They just have the juice in the right places. The thought of "America`s Number One Home Lender" and also the largest mortgage servicing company going down the tubes just will not occur. The Fed can just pump as much cash to Countrywide bank as it needs. When I mentioned that the Ratings on the bonds would force the CFC bank to give up its custodial assets he just smiled. So my guess is that Countrywide will survive as long as this administration does. The shareholders are bailing and rightfully so. A year from now the juice will be gone and the B of A takeover will happen.
 
Hey Trooper Happy New Year.

I have not seen my friend since that last luncheon before the holidays. I will drop him a call and see if he can update me with his latest opinions. He was optimistic back then that some type of bailout from the government would assist Countrywide in the near future.

I agree with Awgee. There is a huge amount of CDS and derivatives tied to Countrywides debt. If that was to collapse it would have a tsunami effect on the market as it unwound.
 
I will drop him a call and see if he can update me with his latest opinions.

Yes, please do....it will be interesting to hear what the CFC counsultant thinks now....
 
Another ugly morning for CFC. Traded as low as $ 4.43. Huge volume. One more bad piece of news and its headed for the pink sheets.
 
I know...I keep refreshing to see what it's down to now. I feel a little sick b/c they hold my 1st mtg....also because the whole thing is just sad.
 
Car crash ? More like a train wreck with toxic materials. It just keeps burning for weeks on end. Think of all the 401K`s for the Employees ? How many pension funds have taken a hit. All the while Mozilo sells and says "Everthing is under control". Its like Enron and nobody is doing anything to stop it. I thought we had regulations to protect investors from this type of corporate fraud and misrepresentation of facts.
 
Morekaos

Doesn't SOXs only require that c-level executive more less sign off on the validity and accuracy of corporate reports? I didn't think it said anything about the validity or accuracy of guidance that was not part of their reports submitted to the SEC.
 
My understanding is that the C level executives must sign off and are responsible for the financial statements accuracy, but that public statemants made by those executives must be truthfull. Mozillos very public declaration last month that CFC would be profitable in December was very spacific. If that does not turn out to be the case (and it won't), he is answerable to those statements. Some poor sap probably bought the stock with just that statemant in mind and is probably not too happy with the Tan Man right now. Watch some slick class action lawyer file a case any moment now.
 
I see your point but those are forward looking statements that investors must digest and then analyze the legitimacy of those statements...right? Now if the Tan Man signed off on financials that showed they were profitable in December when they were not that is a serious problem. It's kind of like all the banking institutions for the last 6 months would not be affected by subprime and then when they reported they had massive write downs.
 
4.66 and counting

OK, the Wamu thing makes me queasy too....that's where I have a 1 yr CD and liquid money market. Just last month, I transferred all said $$ into Wamu CD and money market from my deferred compensation account ( that I have on top of my regular pension)....I transferred it out of mutual funds because I was afraid of the volatility in the markets, I wanted stability. I've checked, and both accounts are FDIC insured...but still. So now, my "stability" could be going BK and my mortgage holder could be going BK.....WTF !

I feel like I'm in a forest with all the trees falling around me.
 
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