Countrywide tumbles 19% on financing rumors

http://money.cnn.com/2007/08/15/news/companies/countrywide.reut/index.htm?postversion=2007081515 ^ | 8-15-07

[snowsislander]

...unable to raise money from the commercial paper market.

That's hard for me to believe.

If Countrywide cannot sell commercial paper, then they are probably not viable as a major financial corporation since they would likely be facing a severe liquidity problem.

[dennisw]

Exactly! I’m so tired of libertarian cult-of-the-CEO groupies talking here about how these honchos are patriotic, working for everybody’s best interest, etc. Thank you for refreshing truth.

Look up Stephen Schwartzman, who earned 400 million last year and threw a crazy ass 60th birthday party for himself. That got everyone's attention

[Toddsterpatriot]

I have some very interesting bond opportunities for you.

[ARW3A]

You should read their recent financials from last week. It ain’t pretty.

[DeaconBenjamin]

``Effective insolvency'' would result if creditors force Countrywide to sell assets at depressed prices or investors lose confidence in its ability to raise cash, Kenneth Bruce, a Merrill analyst in San Francisco, said in a research note today.

Shareholders shouldn't ``understate the importance of liquidity,'' Bruce wrote. ``If liquidations occur in a weak market, then it is possible for CFC to go bankrupt,'' said Bruce, who downgraded Countrywide to ``sell'' from ``buy.'' The Calabasas, California-based company trades under the ticker CFC.

[Oatka]

I just heard a Ditech ad that said “get a loan on your equity and we’ll give you a credit card SO YOU CAN PAY DOWN YOUR DEBTS.

Unfortunately, the suckers will line up despite all the news.

[gcruse]

” almost paid off on his mortgage then refied through country wide.’

Him not so smart. Must like making payments.

[djf]

Hearing rumors about alot of margin calls going on...

Selling into a falling market can only exacerbate the situation.

[dragnet2]

Country Wide is not on your side.

[rb22982]

How had he ‘almost’ paid off his loan but his refi prepayment penalty is 20k in interest payments alone and would put him over what his home is worth? He must have taken out a helluva large equity amt in his house. Not very smart.