Vic
Elite Member
- Jun 12, 2001
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Of course, I haven't put it all off to the nuttiness of buyers, I just explained that as ONE single contributing factor among many others I also listed (which you then right here immediately admited that it was a contributing factor). All of which is you backpedaling in textbook fashion by making up little straw men.
Vic
Elite Member
- Jun 12, 2001
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Because you and people like you are the biggest thugs of all, Dave. Isn't that obvious?
You're a washed-up bitter has-been of an ex-man who has dedicated what's left of your pathetic loser life to spreading as much of your own personal misery to other people as possible.
DonVito said it best IMO:
You see, these "financial thugs" you wish so much ill on, these 1,900 at Greenpoint and the thousands elsewhere who have lost their jobs, are just normal people doing normal jobs. Just real people like everyone else. Just like you even. You demonize them and dehumanize them only because to admit that you wish so much ill will on other human beings would explicit contradict your supposed ideology of caring about "the poor" (also, to give you the benefit of the doubt, I think your bitterness has you in deep denial of your own motives).
Dehumanization is IMO the basis of all human evil. You imagine evil in others so that you may inflict evil upon them. In a very real way, you and Jhhnn and others are no different than soldiers killing "the bad guys" in Iraq. You other think you're different because you fantasize that you're fighting a different group of bad guys, and that that makes it all right.
and I see Jhhnn gets close to home.
Come on, those people knew what they were doing.
Yes, there are some genuine good people caught up in it (if you paid attention you would note I mentioned good people I knew at Homebanc that Countrywide swallowed up. I didn't see you complaining then) but not all of them.
Preying upon others for own personal profit does not change simply because the name over the Corporation door changes.
The one that got bandied around during the farm crisis of the 80's was:
"I only paid the going rate". The problem is that their "going rate" happened to be more then anybody else was willing to pay. The truth is they were betting on the inflation to continue. Not only were they wrong about that, but then things really came unglued when the interest rates shoot to the moon. That dragged a sizable number of otherwise solid, good managers down with them.
Vic
Elite Member
- Jun 12, 2001
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Except that wasn't the mentality here. These people weren't thinking "They wouldn't loan me the money if they didn't think I could pay it back." They weren't even thinking about any possibility of not being able to pay the loan back. That wasn't a doubt in their minds. Because they were thinking about how much profit they were gonna make from selling it in a rapidly appreciating market. I wasn't watching from some fantasy internet message board or reading about it on blogs. I was right there in middle of it, begging them to use some common sense. Just like I'm doing the same with the irrational doomsayers now. But nah, you're too busying "preying upon others" while bitching about other people doing the same. I sometimes wonder, what would you do if you got that complete economic collapse you so desire?
That sounds like exactly the same mentality. Just wait until the interest rates double on them, that's what happened around here in the 80's and we still haven't fully recovered from it.
I'd like to see some percentages from valid polling houses to backup your bullshit claims BIC.
Your proposition that the majority of the subprime loans were 'hotsellers' is beyond ignorant.
You may have had 4 such borrowers in your tiny little bh, but you're a little fish in an infinite sea lad.
86% of subprime is being met with payments, I know that 14% is a fairly large default but the numbers don't paint your particular floor.
The fed won't let country wide sink regarless of the moral implications of such a bail-out.
I sure as hell wouldn't recommend your services Bic.
Rogo
Your proposition that the majority of the subprime loans were 'hotsellers' is beyond ignorant.
You may have had 4 such borrowers in your tiny little bh, but you're a little fish in an infinite sea lad.
86% of subprime is being met with payments, I know that 14% is a fairly large default but the numbers don't paint your particular floor.
The fed won't let country wide sink regarless of the moral implications of such a bail-out.
I sure as hell wouldn't recommend your services Bic.
Rogo
Vic
Elite Member
- Jun 12, 2001
- 50,422
- 14,337
- 136
That's fine. No sense selling a 30 year mortgage to someone who is convinced the world is gonna end in 20 years. 
A couple things here. Despite what smacktool straw man'ed, I don't support a fed bailout, I just predict one will occur if necessary. However, I don't believe such a bailout will prove necessary in CFC's particular case.
I specifically blamed the Fed for setting this up (no conspiracy though, just the usual shortsightedness). Only a troll like Jhhnn could turn that into me blaming the buyers, although there is no doubt that irrational exhuberence by buyers fed the last and worst part of the boom.
Rogo, you live in Wenatchee, so don't talk to me about "tiny little" anything. Although I work for a national association bank, not any brokerage.
Oh, and the only use of the word "hotsellers" in this thread is by you.
A couple things here. Despite what smacktool straw man'ed, I don't support a fed bailout, I just predict one will occur if necessary. However, I don't believe such a bailout will prove necessary in CFC's particular case.
I specifically blamed the Fed for setting this up (no conspiracy though, just the usual shortsightedness). Only a troll like Jhhnn could turn that into me blaming the buyers, although there is no doubt that irrational exhuberence by buyers fed the last and worst part of the boom.
Rogo, you live in Wenatchee, so don't talk to me about "tiny little" anything. Although I work for a national association bank, not any brokerage.
Oh, and the only use of the word "hotsellers" in this thread is by you.
Originally posted by: Vic
That's fine. No sense selling a 30 year mortgage to someone who is convinced the world is gonna end in 20 years.
A couple things here. Despite what smacktool straw man'ed, I don't support a fed bailout, I just predict one will occur if necessary. However, I don't believe such a bailout will prove necessary in CFC's particular case.
I specifically blamed the Fed for setting this up (no conspiracy though, just the usual shortsightedness). Only a troll like Jhhnn could turn that into me blaming the buyers, although there is no doubt that irrational exhuberence by buyers fed the last and worst part of the boom.
Rogo, you live in Wenatchee, so don't talk to me about "tiny little" anything. Although I work for a national association bank, not any brokerage.
Oh, and the only use of the word "hotsellers" in this thread is by you.
Vic, I couldn't have said it better myself. Wenatchee....Buwahahahha. Is Don Reichert still in business there?
Nothing big ever happens in wenatchee, seldom does anything small ever happen there either. It's kind of like the dead zone of washington state.
Vic
Elite Member
- Jun 12, 2001
- 50,422
- 14,337
- 136
Countrywide buoyed on Buffet speculation
Yahoo chart as of 1:23pm ET shows CFC now up 10.6% Text
Sorry, guys, but the speculation about CFC's demise was always silly, but it looks like it'll give some big fish an opportunity to buy in cheap. No shocker there.
And look! Regulators actively regulating! Whodathunk?
Yahoo chart as of 1:23pm ET shows CFC now up 10.6% Text
Sorry, guys, but the speculation about CFC's demise was always silly, but it looks like it'll give some big fish an opportunity to buy in cheap. No shocker there.
And look! Regulators actively regulating! Whodathunk?
From vic-
And-
Followed by this, which is backpedalling if I ever saw it-
Remarkable that you've blamed the buyers, twice, claiming you haven't, and now blame the Fed... Any port in a storm, right? The lenders and bundlers of MBS's must somehow remain blameless, right?
First off, your reference to double digit mortgage rates in the 70's and 80's is erroneous- rates weren't in double digits throughout that period-
http://www.thompsonsrealty.com...tory/page_1708965.html
Freddie Mac numbers...
Which is mostly an aside, but it's important to keep assertions of fact... factual.
In previous discussions, you've given the impression that you're mostly involved in more high end lending, and i have no doubt that the whole profit motive you cite was very much in play in that market segment. OTOH, low end first time buyers were often operating on fear- fear that they'd never be able to become a homeowner because of the explosive rise in prices for the previous years... they couldn't save money fast enough to achieve the necessary capital for even a fha or va loan, which made them easy marks for ARM's or interest only notes in the subprime market. It worked for some, those whose incomes rose and credit ratings along with it- as the valuation went up, they moved into a maybe affordable fixed mortgage prior to the recent round of rate increases...
Those still holding the bag today are caught between a rock and a hard place- rising rates and qualifications along with decreasing valuations. They're stuck, chained over the log.
While their creditors may be loathe to foreclose when their current loan expires or if they can't keep up on the payments, there's really no other mechanism to resolve the predicament... It's far from over, no matter how rosy a picture some want to paint. Huge numbers of short term mortgages will reset early next year. How many of those debtors will qualify for longterm notes in the new climate of investor skepticism? How many will default in the face of higher payments for a house that's now worth less? Who takes the loss when the owner can't refinance his interest only note when it balloons?
We'll have answers some time next year.
I'm with you in believing that the Fed is largely to blame, but they're not alone in that. To identify the other responsible parties, it's only necessary to follow the money. No matter what happens to the borrowers and the investors, the middlemen still walk away with their cut... their fees, commissions, salaries, bonuses and perks, with their former corporate entities left holding unbundled unsold mortgage obligations... not to mention the hedge fund execs who walk away with millions.
Referencing Countrywide's modest rally based on speculation that Buffet plans on buying it seems more like propaganda than anything else, and the federal regulators currently on site there only arrived in March, when countrywide became a thrift institution... Countrywide's problems stem from loans made long before that, and from an unwillingness of investors to buy more bundled securities. If Countrywide goes down, then the rabbithole is very deep indeed.
Like you, I'm not in favor of a bailout, either, but that may become an economic and political necessity. We'll see.
And-
Followed by this, which is backpedalling if I ever saw it-
Remarkable that you've blamed the buyers, twice, claiming you haven't, and now blame the Fed... Any port in a storm, right? The lenders and bundlers of MBS's must somehow remain blameless, right?
First off, your reference to double digit mortgage rates in the 70's and 80's is erroneous- rates weren't in double digits throughout that period-
http://www.thompsonsrealty.com...tory/page_1708965.html
Freddie Mac numbers...
Which is mostly an aside, but it's important to keep assertions of fact... factual.
In previous discussions, you've given the impression that you're mostly involved in more high end lending, and i have no doubt that the whole profit motive you cite was very much in play in that market segment. OTOH, low end first time buyers were often operating on fear- fear that they'd never be able to become a homeowner because of the explosive rise in prices for the previous years... they couldn't save money fast enough to achieve the necessary capital for even a fha or va loan, which made them easy marks for ARM's or interest only notes in the subprime market. It worked for some, those whose incomes rose and credit ratings along with it- as the valuation went up, they moved into a maybe affordable fixed mortgage prior to the recent round of rate increases...
Those still holding the bag today are caught between a rock and a hard place- rising rates and qualifications along with decreasing valuations. They're stuck, chained over the log.
While their creditors may be loathe to foreclose when their current loan expires or if they can't keep up on the payments, there's really no other mechanism to resolve the predicament... It's far from over, no matter how rosy a picture some want to paint. Huge numbers of short term mortgages will reset early next year. How many of those debtors will qualify for longterm notes in the new climate of investor skepticism? How many will default in the face of higher payments for a house that's now worth less? Who takes the loss when the owner can't refinance his interest only note when it balloons?
We'll have answers some time next year.
I'm with you in believing that the Fed is largely to blame, but they're not alone in that. To identify the other responsible parties, it's only necessary to follow the money. No matter what happens to the borrowers and the investors, the middlemen still walk away with their cut... their fees, commissions, salaries, bonuses and perks, with their former corporate entities left holding unbundled unsold mortgage obligations... not to mention the hedge fund execs who walk away with millions.
Referencing Countrywide's modest rally based on speculation that Buffet plans on buying it seems more like propaganda than anything else, and the federal regulators currently on site there only arrived in March, when countrywide became a thrift institution... Countrywide's problems stem from loans made long before that, and from an unwillingness of investors to buy more bundled securities. If Countrywide goes down, then the rabbithole is very deep indeed.
Like you, I'm not in favor of a bailout, either, but that may become an economic and political necessity. We'll see.
Vic
Elite Member
- Jun 12, 2001
- 50,422
- 14,337
- 136
I don't know why I constantly have to deal with ignorant pompous lying trolls like Jhhnn on this forum all the time. :roll:
Here's a tip: everything's documented here. Including where I blamed the Fed (first), particularly Volcker and Greenspan, including where I said that their contrasting rates policies fed buyers' and lenders' expectations of appreciation and led to this inflationary market, including where you said that I then put it all off on the nuttiness of borrower, and including where you said "that factor has only been a part of the problem."
Check it out:
Oh yeah, "any port in a storm." :roll:
Here's a tip: everything's documented here. Including where I blamed the Fed (first), particularly Volcker and Greenspan, including where I said that their contrasting rates policies fed buyers' and lenders' expectations of appreciation and led to this inflationary market, including where you said that I then put it all off on the nuttiness of borrower, and including where you said "that factor has only been a part of the problem."
Check it out:
Oh yeah, "any port in a storm." :roll:
Another day and another Mortgage Company shutes down.
8-22-2007 Accredited shuts down much of company
Accredited Home Lenders Holding Co. plans to shut down most of its business to survive the troubles in the home lending industry, the company said Wednesday.
Accredited Home Lenders said it will cut its work force to 1,000 people ? from 2,600 at the end of June ? and close 65 branches. The company will immediately stop accepting applications for home loans in the U.S.
The company will close its retail lending business, which issues home loans directly to consumers. Accredited is also scaling back much of its wholesale lending division, which issues mortgages through brokers. The company will close five of its 10 brokered loan offices and lay off about three-fifths of the unit's workers.
Accredited Home Lenders, which issued $15.77 billion in home loans last year
Accredited's Canadian operations are unaffected, and the company will continue to collect payments on the $8.4 billion in loans in its servicing portfolio.
More than 50 lenders have gone bankrupt this year, including two of the nation's 10 biggest.
======================================================
More than 50 lenders have gone bankrupt this year, including two of the nation's 10 biggest.
Which Dave predicted and resident P&Ners said would never happen.
8-22-2007 Accredited shuts down much of company
Accredited Home Lenders Holding Co. plans to shut down most of its business to survive the troubles in the home lending industry, the company said Wednesday.
Accredited Home Lenders said it will cut its work force to 1,000 people ? from 2,600 at the end of June ? and close 65 branches. The company will immediately stop accepting applications for home loans in the U.S.
The company will close its retail lending business, which issues home loans directly to consumers. Accredited is also scaling back much of its wholesale lending division, which issues mortgages through brokers. The company will close five of its 10 brokered loan offices and lay off about three-fifths of the unit's workers.
Accredited Home Lenders, which issued $15.77 billion in home loans last year
Accredited's Canadian operations are unaffected, and the company will continue to collect payments on the $8.4 billion in loans in its servicing portfolio.
More than 50 lenders have gone bankrupt this year, including two of the nation's 10 biggest.
======================================================
More than 50 lenders have gone bankrupt this year, including two of the nation's 10 biggest.
Which Dave predicted and resident P&Ners said would never happen.
Vic
Elite Member
- Jun 12, 2001
- 50,422
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- 136
Except you can't prove this claim.... :roll:
And I was predicting a housing bubble years ago AND that it would occur from a lack of financing funds (as opposed to a buyer pullback from the market as everyone else predicted).
You and your ghoulish troll buddies here seem confused about a few things.
First, you're wrong about so many things that it's difficult to give you any credit for those relatively few times you end up being right. Even a broken clock is right twice each day.
Second, the way you seem to literally enjoy those time you're "right" about something that directly and negatively impacts the lives of thousands of people represents a ghoulish lack of empathy to the human condition -- a callousness to the suffering of others so cold and evil that then whenever your or your little buddies here scream and cry about suffering in some vague group of people that it just appears contrived and not credible.
And third, you're completely lacking in basic common sense and in the simple communication skills that one would expect from a child. For example, I predict that you'll respond to this post with one of your typical canned replies, your usual "your heroes" bot or something like that, without actually addressing what I've said here. Either that or you'll post someone else's post from another thread and try to make it look like I said that.
Sigh... there's a reason that the world's leading anti-conspiracy theory magazine is called Skeptic and that it's chaired by leading scientists like Dawkins and Diamond. Your conspiracy religion sucks, Dave.
I don't see anyone "confused" except you and your buds wondering what happened to your total control and dominance over the U.S. in your path of destroying it for personal profits.
My proof is in years of posts going back to the originating days of P&N after it was renamed from the "War in Iraq" forum.
All others remember quite well you and your buds touting that everything is wonderful and that these things that many, not just me warned about, said you guys are full of crap are coming home to roost now.
Of course thank god most now see through your years of thinly veiled web of fraud and deception especially as you so pointed out so many thousands of lives are now negatively impacted which I also said there was going to be a tipping point and it is arriving.
The only thing "ghoulish" is the fact that now you are saying this when just a couple of short years ago you were in fact saying the exact opposite.
Talk about lack of communication skills Mr lack of paragraphs.
You and your buds "Corporation and profits above all else" is catching up to you all.
You and your buds have been busted and clearly don't like it.
Enjoy
Vic
Elite Member
- Jun 12, 2001
- 50,422
- 14,337
- 136
Originally posted by: dmcowen674
I don't see anyone "confused" except you and your buds wondering what happened to your total control and dominance over the U.S. in your path of destroying it for personal profits.
My proof is in years of posts going back to the originating days of P&N after it was renamed from the "War in Iraq" forum.
All others remember quite well you and your buds touting that everything is wonderful and that these things that many, not just me warned about, said you guys are full of crap are coming home to roost now.
Of course thank god most now see through your years of thinly veiled web of fraud and deception especially as you so pointed out so many thousands of lives are now negatively impacted which I also said there was going to be a tipping point and it is arriving.
The only thing "ghoulish" is the fact that now you are saying this when just a couple of short years ago you were in fact saying the exact opposite.
Talk about lack of communication skills Mr lack of paragraphs.
You and your buds "Corporation and profits above all else" is catching up to you all.
You and your buds have been busted and clearly don't like it.
Enjoy
Prove that a couple of short years ago I was saying exactly the opposite. Oops, you can't, because I wasn't. What I've really been about the housing bubble all these years is how shortsighted it is to think of it as just a "housing bubble" (and thus an opportunity to buy homes cheaper) when in fact it is much bigger than that. Just like it shortsighted for you to think that an economic collapse would mean a transition to socialism and away from the corporations when in fact it will result in war and corporo-fascist tyranny.
It's bad enough that you're moron, troll, and liar, Dave. The worst part is that you're so deluded that you can't stand any questioning of the nonsense you spew. I'm as avidly anti-war and anti-corporate as they come, you're just too stupid to see it.
Oh and BTW, I did use paragraphs. Just not line spacing. Get it straight.
And last thing, I love this fantastical internet myth that people in the mortgage industry never saw this coming. At the place I worked at from 2001 to 2005, the president was always rallying the loan officers saying "Make hay while the sun shines!" Duh.
Then your argument of "thousands suffering from the Mortgage job losses" doesn't hold water then eh?
You're the ultimate Flip-Flopper :laugh:
Originally posted by: Vic
Tell ya what, broken clock, take those thousands of jobs lost and pretend that they were all American union manufacturing jobs. What would your opinion and spin be then?
I rest my case.
Nobody is pretending here but you.
Question for you.
How many wells does a "liquid" Company according to have to dip in to?
8-22-2007 Countrywide Financial Says Bank of America Made Equity Investment of $2 Billion Into Company
Countrywide Financial Corp. said Wednesday that Bank of America Corp. has made an equity investment of $2 billion in the company, a deal that comes as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
The transaction was completed and funded Wednesday, Countrywide said.
"Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.
"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," he said.
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.
Calabasas-based Countrywide said last Thursday it had borrowed $11.5 billion from several dozen banks so it could keep making home loans.
=====================================================
Hmmmm, why would they need an additional $2 billion on top of the $11.5 billion they already got last week???
Does this sound like an investment in a Yacht or a Submarine with a leak?
Originally posted by: dmcowen674
Originally posted by: Vic
Tell ya what, broken clock, take those thousands of jobs lost and pretend that they were all American union manufacturing jobs. What would your opinion and spin be then?
I rest my case.
Nobody is pretending here but you.
Question for you.
How many wells does a "liquid" Company according to have to dip in to?
8-22-2007 Countrywide Financial Says Bank of America Made Equity Investment of $2 Billion Into Company
Countrywide Financial Corp. said Wednesday that Bank of America Corp. has made an equity investment of $2 billion in the company, a deal that comes as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
The transaction was completed and funded Wednesday, Countrywide said.
"Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.
"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," he said.
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.
Calabasas-based Countrywide said last Thursday it had borrowed $11.5 billion from several dozen banks so it could keep making home loans.
=====================================================
Hmmmm, why would they need an additional $2 billion on top of the $11.5 billion they already got last week???
Does this sound like an investment in a Yacht or a Submarine with a leak?
Do you even understand what liquid for a mortgage company means? I swear you're being combative about an industry you're absolutely confused about.
Originally posted by: glutenberg
Originally posted by: dmcowen674
Originally posted by: Vic
Tell ya what, broken clock, take those thousands of jobs lost and pretend that they were all American union manufacturing jobs. What would your opinion and spin be then?
I rest my case.
Nobody is pretending here but you.
Question for you.
How many wells does a "liquid" Company according to have to dip in to?
8-22-2007 Countrywide Financial Says Bank of America Made Equity Investment of $2 Billion Into Company
Countrywide Financial Corp. said Wednesday that Bank of America Corp. has made an equity investment of $2 billion in the company, a deal that comes as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
The transaction was completed and funded Wednesday, Countrywide said.
"Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.
"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," he said.
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.
Calabasas-based Countrywide said last Thursday it had borrowed $11.5 billion from several dozen banks so it could keep making home loans.
=====================================================
Hmmmm, why would they need an additional $2 billion on top of the $11.5 billion they already got last week???
Does this sound like an investment in a Yacht or a Submarine with a leak?
Do you even understand what liquid for a mortgage company means? I swear you're being combative about an industry you're absolutely confused about.
I wasn't being combative at all. I was mearly asking why this giant would possibly need $13.5 billion dollars when folks like Vic say they are perfectly fine.
Don't know who you are but apparently you weren't around but I predicted at the beginning of the year CW's implosion.
Originally posted by: dmcowen674
Originally posted by: glutenberg
Originally posted by: dmcowen674
Originally posted by: Vic
Tell ya what, broken clock, take those thousands of jobs lost and pretend that they were all American union manufacturing jobs. What would your opinion and spin be then?
I rest my case.
Nobody is pretending here but you.
Question for you.
How many wells does a "liquid" Company according to have to dip in to?
8-22-2007 Countrywide Financial Says Bank of America Made Equity Investment of $2 Billion Into Company
Countrywide Financial Corp. said Wednesday that Bank of America Corp. has made an equity investment of $2 billion in the company, a deal that comes as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
The transaction was completed and funded Wednesday, Countrywide said.
"Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.
"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," he said.
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.
Calabasas-based Countrywide said last Thursday it had borrowed $11.5 billion from several dozen banks so it could keep making home loans.
=====================================================
Hmmmm, why would they need an additional $2 billion on top of the $11.5 billion they already got last week???
Does this sound like an investment in a Yacht or a Submarine with a leak?
Do you even understand what liquid for a mortgage company means? I swear you're being combative about an industry you're absolutely confused about.
I wasn't being combative at all. I was mearly asking why this giant would possibly need $13.5 billion dollars when folks like Vic say they are perfectly fine.
Don't know who you are but apparently you weren't around but I predicted at the beginning of the year CW's implosion.
I'm assuming you realize that a mortgage lender's line of credit is their source of liquidity. They run into liquidity problems when people won't lend to them and it seems that in this situation, many reputable banks are more than willing to lend whether it be in the form of credit or equity.
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