double whopper (with cheese)

[drunkle]

boa stock heading south for the winter?

http://news.yahoo.com/s/nm/20080110/bs_nm/countrywide_bankofamerica_dc_1

filler:

magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies magpies

[asragov]

Over at Calculated Risk there was an interesting article how servicers are having cash crunches as foreclosures rise, since they are advancing tax and insurance payments.

It seems like BofA would be acquiring a big headache by buying Countrywide if the trend continues, unless, the price is right ….

http://calculatedrisk.blogspot.com/2008/01/loan-servicers-advancing-interest.html

[drunkle]

i’m hoping they announce a deal soon (before the 19th) and agree to a price upwards of $12.50/share…

[Coronita]

Me thinks with American Express just doing a warning, that any market pop will be hindered in the coming days. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Eugene]

Looking forward to them closing this deal so I can short BofA.

[HereWeGo]

You’re insane if you short BAC. This potential deal speaks to the strength of BAC’s balance sheet, not it’s weakness.

[Eugene]

There’s a good chance that CFC’s weaknesses would overpower BAC’s strengths.

To put it this way – the amount of option ARMs alone – not including alt-a, subprime, second mortgages, etc. – issued by Countrywide in the last few years of its sorry existence is roughly comparable to Bank of America’s market cap.

[HereWeGo]

Not a bad point, actually, but Herb Greenberg just reported that the government will likely guarantee BAC against CFC-related losses.

If that’s the case, BAC will come out as the premier retail bank in the US … they might not even need to divest the CFC bank, as the bank is a “thrift” and therefore does not count against the 10% deposit limit, apparently.

As another short idea after a bump, I doubt IMB gets the same consideration from the Fed as CFC.

[cr]

Keyword: “talk”

Just wait until they see Countrywide unbalanced sheets.

I’ll bet their number of Alt-A, no-doc, and even “prime” loans set to reset dwarfs their subprime.

[Coronita]

Keyword: "talk"

Just wait until they see Countrywide unbalanced sheets.

I'll bet their number of Alt-A, no-doc, and even "prime" loans set to reset dwarfs their subprime.

 

I'm sure BofA already knows about the dirty laundry. After all, they did plunk a big chunk as an initial investment into CFC.

 

I just wonder if BofA is doing this so both banks and government can start to sweep the problems under the carpet, while BofA scores favors from the government over time.

->CFC needs a bailout of some sort. Government won't be able to bail them out directly. BofA buys them, and will writedown all the problems over an extended period of time.

->Government will give "special privileges" to BofA over time, by taking leaving this genormous problem in the private sector, while behind closed doors assist BofA in spreading out the problem over years to come. For example, as BofA goes on an acquisition spree, expect no inquiry from antitrust regulators (or at least they'll go through the handmotions but not raise any flags).

->BofA will emerge out of this as the largest US bank and will dominate. 

 

It will be interesting to see when we look back to this period, if history can draw parallelism between BofA CEO Kenneth Lewis of today with J.P. Morgan back in handling the Panic of 1907. Almost eerie, our current situation is 100 years later.

 

For a short refresher of that history:

http://en.wikipedia.org/wiki/Panic_of_1907

 

See, it wasn't the first time Banks in the U.S. got into trouble. I guess for that reason, I have some degree of confidence that over time, we'll emerge from this ok. Which generation this will happen in, I don't know.

 

The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis in the United States. The stock market fell nearly 50% from its peak in 1906, the economy was in recession, and there were numerous runs on banks and trust companies. Its primary cause was a retraction of loans by some banks that began in New York and soon spread across the nation, leading to the closings of banks and businesses. The severity of the downturn was such that it eventually pressured the United States Congress to enact the Federal Reserve Act creating the Federal Reserve System in 1913. The 1907 panic was the fourth panic in 34 years.

One of the contributing factors of the Panic involved F. Augustus Heinze and his bank, Knickerbocker Trust Company. Heinze copied the speculation tactics of Charles W. Morse, who had obtained control of the Bank of North America and other banks to float consolidations and other schemes. In 1906, Heinze sold his shares in Montana copper mines for $12 million. He then moved to New York, bought Knickerbocker Trust and became a director in a national financial chain. Banking industry leaders, threatened by the developing trusts, staged a financial attack on Heinze's Knickerbocker Trust. Their motive was to sway public and congressional opinion against trusts.

In March 1907, over-expansion and poor speculation led to a stock market crash. Money became extremely tight. A second crash occurred in October 1907. This time, the crash was directly precipitated by Heinze's brothers, who had used money borrowed from Knickerbocker Trust in a failed attempt to corner United Copper. In the wake of the crash, Heinze was forced to resign as bank president. On October 21, the National Bank of Commerce ceased to honor checks of Knickerbocker Trust, causing a run on the Knickerbocker Trust. By the end of October 22, the National Bank of North America had failed and runs were sparked on nearly every trust in New York.

To bring relief to the situation, United States Secretary of the TreasuryGeorge B. Cortelyou earmarked $35 million of Federal money to quell the storm. Complete ruin of the national economy was averted when J.P. Morgan stepped in to meet the crisis. Morgan organized a team of bank and trust executives. The team redirected money between banks, secured further international lines of credit, and bought plummeting stocks of healthy corporations. Within a few weeks the panic passed, with only minimal effects on the country.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Keyword: "talk"

Just wait until they see Countrywide unbalanced sheets.

I'll bet their number of Alt-A, no-doc, and even "prime" loans set to reset dwarfs their subprime.

 

I'm sure BofA already knows about the dirty laundry. After all, they did plunk a big chunk as an initial investment into CFC.

 

I just wonder if BofA is doing this so both banks and government can start to sweep the problems under the carpet, while BofA scores favors from the government over time.

->CFC needs a bailout of some sort. Government won't be able to bail them out directly. BofA buys them, and will writedown all the problems over an extended period of time.

->Government will give "special privileges" to BofA over time, by taking leaving this genormous problem in the private sector, while behind closed doors assist BofA in spreading out the problem over years to come. For example, as BofA goes on an acquisition spree, expect no inquiry from antitrust regulators (or at least they'll go through the handmotions but not raise any flags).

->BofA will emerge out of this as the largest US bank and will dominate. 

 

It will be interesting to see when we look back to this period, if history can draw parallelism between BofA CEO Kenneth Lewis of today with J.P. Morgan back in handling the Panic of 1907. Almost eerie, our current situation is 100 years later.

 

For a short refresher of that history:

http://en.wikipedia.org/wiki/Panic_of_1907

 

See, it wasn't the first time Banks in the U.S. got into trouble. I guess for that reason, I have some degree of confidence that over time, we'll emerge from this ok. Which generation this will happen in, I don't know.

 

The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis in the United States. The stock market fell nearly 50% from its peak in 1906, the economy was in recession, and there were numerous runs on banks and trust companies. Its primary cause was a retraction of loans by some banks that began in New York and soon spread across the nation, leading to the closings of banks and businesses. The severity of the downturn was such that it eventually pressured the United States Congress to enact the Federal Reserve Act creating the Federal Reserve System in 1913. The 1907 panic was the fourth panic in 34 years.

One of the contributing factors of the Panic involved F. Augustus Heinze and his bank, Knickerbocker Trust Company. Heinze copied the speculation tactics of Charles W. Morse, who had obtained control of the Bank of North America and other banks to float consolidations and other schemes. In 1906, Heinze sold his shares in Montana copper mines for $12 million. He then moved to New York, bought Knickerbocker Trust and became a director in a national financial chain. Banking industry leaders, threatened by the developing trusts, staged a financial attack on Heinze's Knickerbocker Trust. Their motive was to sway public and congressional opinion against trusts.

In March 1907, over-expansion and poor speculation led to a stock market crash. Money became extremely tight. A second crash occurred in October 1907. This time, the crash was directly precipitated by Heinze's brothers, who had used money borrowed from Knickerbocker Trust in a failed attempt to corner United Copper. In the wake of the crash, Heinze was forced to resign as bank president. On October 21, the National Bank of Commerce ceased to honor checks of Knickerbocker Trust, causing a run on the Knickerbocker Trust. By the end of October 22, the National Bank of North America had failed and runs were sparked on nearly every trust in New York.

To bring relief to the situation, United States Secretary of the TreasuryGeorge B. Cortelyou earmarked $35 million of Federal money to quell the storm. Complete ruin of the national economy was averted when J.P. Morgan stepped in to meet the crisis. Morgan organized a team of bank and trust executives. The team redirected money between banks, secured further international lines of credit, and bought plummeting stocks of healthy corporations. Within a few weeks the panic passed, with only minimal effects on the country.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Keyword: "talk"

Just wait until they see Countrywide unbalanced sheets.

I'll bet their number of Alt-A, no-doc, and even "prime" loans set to reset dwarfs their subprime.

 

I'm sure BofA already knows about the dirty laundry. After all, they did plunk a big chunk as an initial investment into CFC.

 

I just wonder if BofA is doing this so both banks and government can start to sweep the problems under the carpet, while BofA scores favors from the government over time.

->CFC needs a bailout of some sort. Government won't be able to bail them out directly. BofA buys them, and will writedown all the problems over an extended period of time.

->Government will give "special privileges" to BofA over time, by taking leaving this genormous problem in the private sector, while behind closed doors assist BofA in spreading out the problem over years to come. For example, as BofA goes on an acquisition spree, expect no inquiry from antitrust regulators (or at least they'll go through the handmotions but not raise any flags).

->BofA will emerge out of this as the largest US bank and will dominate. 

 

It will be interesting to see when we look back to this period, if history can draw parallelism between BofA CEO Kenneth Lewis of today with J.P. Morgan back in handling the Panic of 1907. Almost eerie, our current situation is 100 years later.

 

For a short refresher of that history:

http://en.wikipedia.org/wiki/Panic_of_1907

 

See, it wasn't the first time Banks in the U.S. got into trouble. I guess for that reason, I have some degree of confidence that over time, we'll emerge from this ok. Which generation this will happen in, I don't know.

 

The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis in the United States. The stock market fell nearly 50% from its peak in 1906, the economy was in recession, and there were numerous runs on banks and trust companies. Its primary cause was a retraction of loans by some banks that began in New York and soon spread across the nation, leading to the closings of banks and businesses. The severity of the downturn was such that it eventually pressured the United States Congress to enact the Federal Reserve Act creating the Federal Reserve System in 1913. The 1907 panic was the fourth panic in 34 years.

One of the contributing factors of the Panic involved F. Augustus Heinze and his bank, Knickerbocker Trust Company. Heinze copied the speculation tactics of Charles W. Morse, who had obtained control of the Bank of North America and other banks to float consolidations and other schemes. In 1906, Heinze sold his shares in Montana copper mines for $12 million. He then moved to New York, bought Knickerbocker Trust and became a director in a national financial chain. Banking industry leaders, threatened by the developing trusts, staged a financial attack on Heinze's Knickerbocker Trust. Their motive was to sway public and congressional opinion against trusts.

In March 1907, over-expansion and poor speculation led to a stock market crash. Money became extremely tight. A second crash occurred in October 1907. This time, the crash was directly precipitated by Heinze's brothers, who had used money borrowed from Knickerbocker Trust in a failed attempt to corner United Copper. In the wake of the crash, Heinze was forced to resign as bank president. On October 21, the National Bank of Commerce ceased to honor checks of Knickerbocker Trust, causing a run on the Knickerbocker Trust. By the end of October 22, the National Bank of North America had failed and runs were sparked on nearly every trust in New York.

To bring relief to the situation, United States Secretary of the TreasuryGeorge B. Cortelyou earmarked $35 million of Federal money to quell the storm. Complete ruin of the national economy was averted when J.P. Morgan stepped in to meet the crisis. Morgan organized a team of bank and trust executives. The team redirected money between banks, secured further international lines of credit, and bought plummeting stocks of healthy corporations. Within a few weeks the panic passed, with only minimal effects on the country.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Keyword: "talk"

Just wait until they see Countrywide unbalanced sheets.

I'll bet their number of Alt-A, no-doc, and even "prime" loans set to reset dwarfs their subprime.

 

I'm sure BofA already knows about the dirty laundry. After all, they did plunk a big chunk as an initial investment into CFC.

 

I just wonder if BofA is doing this so both banks and government can start to sweep the problems under the carpet, while BofA scores favors from the government over time.

->CFC needs a bailout of some sort. Government won't be able to bail them out directly. BofA buys them, and will writedown all the problems over an extended period of time.

->Government will give "special privileges" to BofA over time, by taking leaving this genormous problem in the private sector, while behind closed doors assist BofA in spreading out the problem over years to come. For example, as BofA goes on an acquisition spree, expect no inquiry from antitrust regulators (or at least they'll go through the handmotions but not raise any flags).

->BofA will emerge out of this as the largest US bank and will dominate. 

 

It will be interesting to see when we look back to this period, if history can draw parallelism between BofA CEO Kenneth Lewis of today with J.P. Morgan back in handling the Panic of 1907. Almost eerie, our current situation is 100 years later.

 

For a short refresher of that history:

http://en.wikipedia.org/wiki/Panic_of_1907

 

See, it wasn't the first time Banks in the U.S. got into trouble. I guess for that reason, I have some degree of confidence that over time, we'll emerge from this ok. Which generation this will happen in, I don't know.

 

The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis in the United States. The stock market fell nearly 50% from its peak in 1906, the economy was in recession, and there were numerous runs on banks and trust companies. Its primary cause was a retraction of loans by some banks that began in New York and soon spread across the nation, leading to the closings of banks and businesses. The severity of the downturn was such that it eventually pressured the United States Congress to enact the Federal Reserve Act creating the Federal Reserve System in 1913. The 1907 panic was the fourth panic in 34 years.

One of the contributing factors of the Panic involved F. Augustus Heinze and his bank, Knickerbocker Trust Company. Heinze copied the speculation tactics of Charles W. Morse, who had obtained control of the Bank of North America and other banks to float consolidations and other schemes. In 1906, Heinze sold his shares in Montana copper mines for $12 million. He then moved to New York, bought Knickerbocker Trust and became a director in a national financial chain. Banking industry leaders, threatened by the developing trusts, staged a financial attack on Heinze's Knickerbocker Trust. Their motive was to sway public and congressional opinion against trusts.

In March 1907, over-expansion and poor speculation led to a stock market crash. Money became extremely tight. A second crash occurred in October 1907. This time, the crash was directly precipitated by Heinze's brothers, who had used money borrowed from Knickerbocker Trust in a failed attempt to corner United Copper. In the wake of the crash, Heinze was forced to resign as bank president. On October 21, the National Bank of Commerce ceased to honor checks of Knickerbocker Trust, causing a run on the Knickerbocker Trust. By the end of October 22, the National Bank of North America had failed and runs were sparked on nearly every trust in New York.

To bring relief to the situation, United States Secretary of the TreasuryGeorge B. Cortelyou earmarked $35 million of Federal money to quell the storm. Complete ruin of the national economy was averted when J.P. Morgan stepped in to meet the crisis. Morgan organized a team of bank and trust executives. The team redirected money between banks, secured further international lines of credit, and bought plummeting stocks of healthy corporations. Within a few weeks the panic passed, with only minimal effects on the country.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Keyword: "talk"

Just wait until they see Countrywide unbalanced sheets.

I'll bet their number of Alt-A, no-doc, and even "prime" loans set to reset dwarfs their subprime.

 

I'm sure BofA already knows about the dirty laundry. After all, they did plunk a big chunk as an initial investment into CFC.

 

I just wonder if BofA is doing this so both banks and government can start to sweep the problems under the carpet, while BofA scores favors from the government over time.

->CFC needs a bailout of some sort. Government won't be able to bail them out directly. BofA buys them, and will writedown all the problems over an extended period of time.

->Government will give "special privileges" to BofA over time, by taking leaving this genormous problem in the private sector, while behind closed doors assist BofA in spreading out the problem over years to come. For example, as BofA goes on an acquisition spree, expect no inquiry from antitrust regulators (or at least they'll go through the handmotions but not raise any flags).

->BofA will emerge out of this as the largest US bank and will dominate. 

 

It will be interesting to see when we look back to this period, if history can draw parallelism between BofA CEO Kenneth Lewis of today with J.P. Morgan back in handling the Panic of 1907. Almost eerie, our current situation is 100 years later.

 

For a short refresher of that history:

http://en.wikipedia.org/wiki/Panic_of_1907

 

See, it wasn't the first time Banks in the U.S. got into trouble. I guess for that reason, I have some degree of confidence that over time, we'll emerge from this ok. Which generation this will happen in, I don't know.

 

The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis in the United States. The stock market fell nearly 50% from its peak in 1906, the economy was in recession, and there were numerous runs on banks and trust companies. Its primary cause was a retraction of loans by some banks that began in New York and soon spread across the nation, leading to the closings of banks and businesses. The severity of the downturn was such that it eventually pressured the United States Congress to enact the Federal Reserve Act creating the Federal Reserve System in 1913. The 1907 panic was the fourth panic in 34 years.

One of the contributing factors of the Panic involved F. Augustus Heinze and his bank, Knickerbocker Trust Company. Heinze copied the speculation tactics of Charles W. Morse, who had obtained control of the Bank of North America and other banks to float consolidations and other schemes. In 1906, Heinze sold his shares in Montana copper mines for $12 million. He then moved to New York, bought Knickerbocker Trust and became a director in a national financial chain. Banking industry leaders, threatened by the developing trusts, staged a financial attack on Heinze's Knickerbocker Trust. Their motive was to sway public and congressional opinion against trusts.

In March 1907, over-expansion and poor speculation led to a stock market crash. Money became extremely tight. A second crash occurred in October 1907. This time, the crash was directly precipitated by Heinze's brothers, who had used money borrowed from Knickerbocker Trust in a failed attempt to corner United Copper. In the wake of the crash, Heinze was forced to resign as bank president. On October 21, the National Bank of Commerce ceased to honor checks of Knickerbocker Trust, causing a run on the Knickerbocker Trust. By the end of October 22, the National Bank of North America had failed and runs were sparked on nearly every trust in New York.

To bring relief to the situation, United States Secretary of the TreasuryGeorge B. Cortelyou earmarked $35 million of Federal money to quell the storm. Complete ruin of the national economy was averted when J.P. Morgan stepped in to meet the crisis. Morgan organized a team of bank and trust executives. The team redirected money between banks, secured further international lines of credit, and bought plummeting stocks of healthy corporations. Within a few weeks the panic passed, with only minimal effects on the country.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[cr]

Keyword: “talk”

Just wait until they see Countrywide unbalanced sheets.

I’ll bet their number of Alt-A, no-doc, and even “prime” loans set to reset dwarfs their subprime.

[cr]

Keyword: “talk”

Just wait until they see Countrywide unbalanced sheets.

I’ll bet their number of Alt-A, no-doc, and even “prime” loans set to reset dwarfs their subprime.

[cr]

Keyword: “talk”

Just wait until they see Countrywide unbalanced sheets.

I’ll bet their number of Alt-A, no-doc, and even “prime” loans set to reset dwarfs their subprime.

[cr]

Keyword: “talk”

Just wait until they see Countrywide unbalanced sheets.

I’ll bet their number of Alt-A, no-doc, and even “prime” loans set to reset dwarfs their subprime.

[HereWeGo]

Not a bad point, actually, but Herb Greenberg just reported that the government will likely guarantee BAC against CFC-related losses.

If that’s the case, BAC will come out as the premier retail bank in the US … they might not even need to divest the CFC bank, as the bank is a “thrift” and therefore does not count against the 10% deposit limit, apparently.

As another short idea after a bump, I doubt IMB gets the same consideration from the Fed as CFC.

[HereWeGo]

Not a bad point, actually, but Herb Greenberg just reported that the government will likely guarantee BAC against CFC-related losses.

If that’s the case, BAC will come out as the premier retail bank in the US … they might not even need to divest the CFC bank, as the bank is a “thrift” and therefore does not count against the 10% deposit limit, apparently.

As another short idea after a bump, I doubt IMB gets the same consideration from the Fed as CFC.

[HereWeGo]

Not a bad point, actually, but Herb Greenberg just reported that the government will likely guarantee BAC against CFC-related losses.

If that’s the case, BAC will come out as the premier retail bank in the US … they might not even need to divest the CFC bank, as the bank is a “thrift” and therefore does not count against the 10% deposit limit, apparently.

As another short idea after a bump, I doubt IMB gets the same consideration from the Fed as CFC.

[HereWeGo]

Not a bad point, actually, but Herb Greenberg just reported that the government will likely guarantee BAC against CFC-related losses.

If that’s the case, BAC will come out as the premier retail bank in the US … they might not even need to divest the CFC bank, as the bank is a “thrift” and therefore does not count against the 10% deposit limit, apparently.

As another short idea after a bump, I doubt IMB gets the same consideration from the Fed as CFC.

[Eugene]

There’s a good chance that CFC’s weaknesses would overpower BAC’s strengths.

To put it this way – the amount of option ARMs alone – not including alt-a, subprime, second mortgages, etc. – issued by Countrywide in the last few years of its sorry existence is roughly comparable to Bank of America’s market cap.

[Eugene]

There’s a good chance that CFC’s weaknesses would overpower BAC’s strengths.

To put it this way – the amount of option ARMs alone – not including alt-a, subprime, second mortgages, etc. – issued by Countrywide in the last few years of its sorry existence is roughly comparable to Bank of America’s market cap.

[Eugene]

There’s a good chance that CFC’s weaknesses would overpower BAC’s strengths.

To put it this way – the amount of option ARMs alone – not including alt-a, subprime, second mortgages, etc. – issued by Countrywide in the last few years of its sorry existence is roughly comparable to Bank of America’s market cap.

[Eugene]

There’s a good chance that CFC’s weaknesses would overpower BAC’s strengths.

To put it this way – the amount of option ARMs alone – not including alt-a, subprime, second mortgages, etc. – issued by Countrywide in the last few years of its sorry existence is roughly comparable to Bank of America’s market cap.

[HereWeGo]

You’re insane if you short BAC. This potential deal speaks to the strength of BAC’s balance sheet, not it’s weakness.

[HereWeGo]

You’re insane if you short BAC. This potential deal speaks to the strength of BAC’s balance sheet, not it’s weakness.

[HereWeGo]

You’re insane if you short BAC. This potential deal speaks to the strength of BAC’s balance sheet, not it’s weakness.

[HereWeGo]

You’re insane if you short BAC. This potential deal speaks to the strength of BAC’s balance sheet, not it’s weakness.

[Eugene]

Looking forward to them closing this deal so I can short BofA.

[Eugene]

Looking forward to them closing this deal so I can short BofA.

[Eugene]

Looking forward to them closing this deal so I can short BofA.

[Eugene]

Looking forward to them closing this deal so I can short BofA.

[Coronita]

Me thinks with American Express just doing a warning, that any market pop will be hindered in the coming days. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Me thinks with American Express just doing a warning, that any market pop will be hindered in the coming days. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Me thinks with American Express just doing a warning, that any market pop will be hindered in the coming days. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Me thinks with American Express just doing a warning, that any market pop will be hindered in the coming days. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[drunkle]

i’m hoping they announce a deal soon (before the 19th) and agree to a price upwards of $12.50/share…

[drunkle]

i’m hoping they announce a deal soon (before the 19th) and agree to a price upwards of $12.50/share…

[drunkle]

i’m hoping they announce a deal soon (before the 19th) and agree to a price upwards of $12.50/share…

[drunkle]

i’m hoping they announce a deal soon (before the 19th) and agree to a price upwards of $12.50/share…

[asragov]

Over at Calculated Risk there was an interesting article how servicers are having cash crunches as foreclosures rise, since they are advancing tax and insurance payments.

It seems like BofA would be acquiring a big headache by buying Countrywide if the trend continues, unless, the price is right ….

http://calculatedrisk.blogspot.com/2008/01/loan-servicers-advancing-interest.html

[asragov]

Over at Calculated Risk there was an interesting article how servicers are having cash crunches as foreclosures rise, since they are advancing tax and insurance payments.

It seems like BofA would be acquiring a big headache by buying Countrywide if the trend continues, unless, the price is right ….

http://calculatedrisk.blogspot.com/2008/01/loan-servicers-advancing-interest.html

[asragov]

Over at Calculated Risk there was an interesting article how servicers are having cash crunches as foreclosures rise, since they are advancing tax and insurance payments.

It seems like BofA would be acquiring a big headache by buying Countrywide if the trend continues, unless, the price is right ….

http://calculatedrisk.blogspot.com/2008/01/loan-servicers-advancing-interest.html

[asragov]

Over at Calculated Risk there was an interesting article how servicers are having cash crunches as foreclosures rise, since they are advancing tax and insurance payments.

It seems like BofA would be acquiring a big headache by buying Countrywide if the trend continues, unless, the price is right ….

http://calculatedrisk.blogspot.com/2008/01/loan-servicers-advancing-interest.html

[Coronita]

Also interesting article…

 

Gov't Seen to Favor Countrywide Buyout

Thursday January 10, 6:34 pm ET
By Alan Zibel, AP Business Writer

A Bank of America Bid for Countrywide Likely Would Get OK From Government, Analysts Say

WASHINGTON (AP) — A buyout of hobbled mortgage lender Countrywide Financial likely would be approved by regulators, analysts say, because otherwise the company could file for bankruptcy, injecting further uncertainty into the home-loan market.

Bank of America Corp. is in talks to acquire Countrywide, The Wall Street Journal and The New York Times reported Thursday online, citing unidentified people familiar with the deal. The transaction would put the country's largest mortgage lender, which has experienced a surge in home-loan defaults and has seen its share price plummet, in the hands of the largest U.S. bank by market capitalization.

A Bank of America-led buyout is "the one and only hope that (Countrywide) has" to avoid bankruptcy, according to Sean Egan, managing director of independent ratings firm Egan-Jones Ratings Co. Egan-Jones warned earlier this week that Countrywide could "falter" unless it receives an infusion of $4 billion in capital within the next two weeks.

"I cannot imagine that the regulators want Countrywide to go under," said Bert Ely, a banking industry consultant in Alexandria, Va. "I think they're actually quite nervous about that."

A combination of Bank of America and Countrywide would require approval from the Federal Reserve, and possibly other agencies. Banking regulators declined to comment on the reports.

Federal law bars banks from making acquisitions that would increase a bank's market share to 10 percent of U.S. deposits, and Bank of America is nearing that point at 9.88 percent. However, experts disagreed about whether deposits held by Countrywide's federally regulated thrift, Countrywide Bank, would count toward that limit.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by lowering interest rates and losing deposits to competitors.

Federal bank regulators "are not looking to clean up messes like the largest mortgage originator in the country going under," said Bart Nater, a San Francisco-based senior analyst with consulting firm Celent.

Regulators are likely to be far more concerned with whether Countrywide fails — and the economic ramifications of such a large collapse — than with consolidation in the mortgage industry, Nater said.

For the first nine months of 2007, Countrywide was the largest U.S. mortgage lender, while Bank of America ranked fifth, according to trade publication Inside Mortgage Finance. Its publisher, Guy Cecala called the potential deal "by far the most palatable way to resolve Countrywide's problems."

A failure at Countrywide, Cecala said, would have severe ripple effects, including forcing the industry and regulators to figure out who would take on the responsibility of collecting payments for millions of U.S. home loans.

It wasn't clear how quickly a deal might be struck for Countrywide, which has been roiled this week by rumors that a bankruptcy filing was imminent. The Journal reported that negotiations between the two companies could fall apart.

Bank of America, which took on a 16 percent stake in Countrywide over the summer, told The Associated Press it does not comment on market rumor or market speculation. Countrywide did not immediately return calls or e-mails seeking comment.

Countrywide shares climbed $2.63, or 51.4 percent, to close at $7.75 Thursday, while Bank of America shares rose 56 cents, or 1.5 percent, to $39.30.

The New York Stock Exchange said Thursday it asked Countrywide to issue a public statement indicating whether there are any corporate developments that can explain the "unusual" trading activity. The exchange said the Countrywide declined to comment.

Countrywide's stock has plummeted in recent days to record lows amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif., lender and others in the mortgage industry.

Last August, the mortgage lender drew on an $11.5 billion line of credit to steady itself.

Bank of America aided Countrywide by buying $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.

If Bank of America should convert the shares, it would hold between 16 percent and 17 percent of Countrywide shares. Like other lenders, Countrywide has tightened its credit guidelines and stopped selling some types of adjustable rate loans.

Last month, when asked whether he saw any opportunities to make yet another deal to expand his financial services empire, Bank of America chief executive Ken Lewis casually answered, "Nothing that comes to mind." When asked specifically about Countrywide, Lewis said he would have "to eat about seven years of my words" if he ever made a deal in the mortgage industry.

AP Business Writers Alex Veiga in Los Angeles and Ieva Augstums in Charlotte contributed to this report.

 

[SD Realtor]

Pretty insightful FLU.

This certainly would fit the pattern.

SD Realtor

[HereWeGo]

What will the final settle be for shares of CFC? The current Street price seems a little steep for a company on the edge of bankruptcy.

[nostradamus]

Did any shorters get stabbed in the arse by CFC today? It’s up 51.37%. Where’s stockstradr?

I currently only have one stock position, it is long, it is holding ground but I’m thinking of getting out of stocks completely for a while.

[Anonymous]

This gain had little effect on the shorts unlesss you happened to short them within the last week. Unless you are mathematically challenged, you will realize that CFC is still trading below where they were only a week ago.

[Anonymous]

This gain had little effect on the shorts unlesss you happened to short them within the last week. Unless you are mathematically challenged, you will realize that CFC is still trading below where they were only a week ago.

[Anonymous]

This gain had little effect on the shorts unlesss you happened to short them within the last week. Unless you are mathematically challenged, you will realize that CFC is still trading below where they were only a week ago.

[Anonymous]

This gain had little effect on the shorts unlesss you happened to short them within the last week. Unless you are mathematically challenged, you will realize that CFC is still trading below where they were only a week ago.

[Anonymous]

This gain had little effect on the shorts unlesss you happened to short them within the last week. Unless you are mathematically challenged, you will realize that CFC is still trading below where they were only a week ago.

[nostradamus]

Did any shorters get stabbed in the arse by CFC today? It’s up 51.37%. Where’s stockstradr?

I currently only have one stock position, it is long, it is holding ground but I’m thinking of getting out of stocks completely for a while.

[nostradamus]

Did any shorters get stabbed in the arse by CFC today? It’s up 51.37%. Where’s stockstradr?

I currently only have one stock position, it is long, it is holding ground but I’m thinking of getting out of stocks completely for a while.

[nostradamus]

Did any shorters get stabbed in the arse by CFC today? It’s up 51.37%. Where’s stockstradr?

I currently only have one stock position, it is long, it is holding ground but I’m thinking of getting out of stocks completely for a while.

[nostradamus]

Did any shorters get stabbed in the arse by CFC today? It’s up 51.37%. Where’s stockstradr?

I currently only have one stock position, it is long, it is holding ground but I’m thinking of getting out of stocks completely for a while.

[HereWeGo]

What will the final settle be for shares of CFC? The current Street price seems a little steep for a company on the edge of bankruptcy.

[HereWeGo]

What will the final settle be for shares of CFC? The current Street price seems a little steep for a company on the edge of bankruptcy.

[HereWeGo]

What will the final settle be for shares of CFC? The current Street price seems a little steep for a company on the edge of bankruptcy.

[HereWeGo]

What will the final settle be for shares of CFC? The current Street price seems a little steep for a company on the edge of bankruptcy.

[SD Realtor]

Pretty insightful FLU.

This certainly would fit the pattern.

SD Realtor

[SD Realtor]

Pretty insightful FLU.

This certainly would fit the pattern.

SD Realtor

[SD Realtor]

Pretty insightful FLU.

This certainly would fit the pattern.

SD Realtor

[SD Realtor]

Pretty insightful FLU.

This certainly would fit the pattern.

SD Realtor

[Coronita]

Also interesting article…

 

Gov't Seen to Favor Countrywide Buyout

Thursday January 10, 6:34 pm ET
By Alan Zibel, AP Business Writer

A Bank of America Bid for Countrywide Likely Would Get OK From Government, Analysts Say

WASHINGTON (AP) — A buyout of hobbled mortgage lender Countrywide Financial likely would be approved by regulators, analysts say, because otherwise the company could file for bankruptcy, injecting further uncertainty into the home-loan market.

Bank of America Corp. is in talks to acquire Countrywide, The Wall Street Journal and The New York Times reported Thursday online, citing unidentified people familiar with the deal. The transaction would put the country's largest mortgage lender, which has experienced a surge in home-loan defaults and has seen its share price plummet, in the hands of the largest U.S. bank by market capitalization.

A Bank of America-led buyout is "the one and only hope that (Countrywide) has" to avoid bankruptcy, according to Sean Egan, managing director of independent ratings firm Egan-Jones Ratings Co. Egan-Jones warned earlier this week that Countrywide could "falter" unless it receives an infusion of $4 billion in capital within the next two weeks.

"I cannot imagine that the regulators want Countrywide to go under," said Bert Ely, a banking industry consultant in Alexandria, Va. "I think they're actually quite nervous about that."

A combination of Bank of America and Countrywide would require approval from the Federal Reserve, and possibly other agencies. Banking regulators declined to comment on the reports.

Federal law bars banks from making acquisitions that would increase a bank's market share to 10 percent of U.S. deposits, and Bank of America is nearing that point at 9.88 percent. However, experts disagreed about whether deposits held by Countrywide's federally regulated thrift, Countrywide Bank, would count toward that limit.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by lowering interest rates and losing deposits to competitors.

Federal bank regulators "are not looking to clean up messes like the largest mortgage originator in the country going under," said Bart Nater, a San Francisco-based senior analyst with consulting firm Celent.

Regulators are likely to be far more concerned with whether Countrywide fails — and the economic ramifications of such a large collapse — than with consolidation in the mortgage industry, Nater said.

For the first nine months of 2007, Countrywide was the largest U.S. mortgage lender, while Bank of America ranked fifth, according to trade publication Inside Mortgage Finance. Its publisher, Guy Cecala called the potential deal "by far the most palatable way to resolve Countrywide's problems."

A failure at Countrywide, Cecala said, would have severe ripple effects, including forcing the industry and regulators to figure out who would take on the responsibility of collecting payments for millions of U.S. home loans.

It wasn't clear how quickly a deal might be struck for Countrywide, which has been roiled this week by rumors that a bankruptcy filing was imminent. The Journal reported that negotiations between the two companies could fall apart.

Bank of America, which took on a 16 percent stake in Countrywide over the summer, told The Associated Press it does not comment on market rumor or market speculation. Countrywide did not immediately return calls or e-mails seeking comment.

Countrywide shares climbed $2.63, or 51.4 percent, to close at $7.75 Thursday, while Bank of America shares rose 56 cents, or 1.5 percent, to $39.30.

The New York Stock Exchange said Thursday it asked Countrywide to issue a public statement indicating whether there are any corporate developments that can explain the "unusual" trading activity. The exchange said the Countrywide declined to comment.

Countrywide's stock has plummeted in recent days to record lows amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif., lender and others in the mortgage industry.

Last August, the mortgage lender drew on an $11.5 billion line of credit to steady itself.

Bank of America aided Countrywide by buying $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.

If Bank of America should convert the shares, it would hold between 16 percent and 17 percent of Countrywide shares. Like other lenders, Countrywide has tightened its credit guidelines and stopped selling some types of adjustable rate loans.

Last month, when asked whether he saw any opportunities to make yet another deal to expand his financial services empire, Bank of America chief executive Ken Lewis casually answered, "Nothing that comes to mind." When asked specifically about Countrywide, Lewis said he would have "to eat about seven years of my words" if he ever made a deal in the mortgage industry.

AP Business Writers Alex Veiga in Los Angeles and Ieva Augstums in Charlotte contributed to this report.

 

[Coronita]

Also interesting article…

 

Gov't Seen to Favor Countrywide Buyout

Thursday January 10, 6:34 pm ET
By Alan Zibel, AP Business Writer

A Bank of America Bid for Countrywide Likely Would Get OK From Government, Analysts Say

WASHINGTON (AP) — A buyout of hobbled mortgage lender Countrywide Financial likely would be approved by regulators, analysts say, because otherwise the company could file for bankruptcy, injecting further uncertainty into the home-loan market.

Bank of America Corp. is in talks to acquire Countrywide, The Wall Street Journal and The New York Times reported Thursday online, citing unidentified people familiar with the deal. The transaction would put the country's largest mortgage lender, which has experienced a surge in home-loan defaults and has seen its share price plummet, in the hands of the largest U.S. bank by market capitalization.

A Bank of America-led buyout is "the one and only hope that (Countrywide) has" to avoid bankruptcy, according to Sean Egan, managing director of independent ratings firm Egan-Jones Ratings Co. Egan-Jones warned earlier this week that Countrywide could "falter" unless it receives an infusion of $4 billion in capital within the next two weeks.

"I cannot imagine that the regulators want Countrywide to go under," said Bert Ely, a banking industry consultant in Alexandria, Va. "I think they're actually quite nervous about that."

A combination of Bank of America and Countrywide would require approval from the Federal Reserve, and possibly other agencies. Banking regulators declined to comment on the reports.

Federal law bars banks from making acquisitions that would increase a bank's market share to 10 percent of U.S. deposits, and Bank of America is nearing that point at 9.88 percent. However, experts disagreed about whether deposits held by Countrywide's federally regulated thrift, Countrywide Bank, would count toward that limit.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by lowering interest rates and losing deposits to competitors.

Federal bank regulators "are not looking to clean up messes like the largest mortgage originator in the country going under," said Bart Nater, a San Francisco-based senior analyst with consulting firm Celent.

Regulators are likely to be far more concerned with whether Countrywide fails — and the economic ramifications of such a large collapse — than with consolidation in the mortgage industry, Nater said.

For the first nine months of 2007, Countrywide was the largest U.S. mortgage lender, while Bank of America ranked fifth, according to trade publication Inside Mortgage Finance. Its publisher, Guy Cecala called the potential deal "by far the most palatable way to resolve Countrywide's problems."

A failure at Countrywide, Cecala said, would have severe ripple effects, including forcing the industry and regulators to figure out who would take on the responsibility of collecting payments for millions of U.S. home loans.

It wasn't clear how quickly a deal might be struck for Countrywide, which has been roiled this week by rumors that a bankruptcy filing was imminent. The Journal reported that negotiations between the two companies could fall apart.

Bank of America, which took on a 16 percent stake in Countrywide over the summer, told The Associated Press it does not comment on market rumor or market speculation. Countrywide did not immediately return calls or e-mails seeking comment.

Countrywide shares climbed $2.63, or 51.4 percent, to close at $7.75 Thursday, while Bank of America shares rose 56 cents, or 1.5 percent, to $39.30.

The New York Stock Exchange said Thursday it asked Countrywide to issue a public statement indicating whether there are any corporate developments that can explain the "unusual" trading activity. The exchange said the Countrywide declined to comment.

Countrywide's stock has plummeted in recent days to record lows amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif., lender and others in the mortgage industry.

Last August, the mortgage lender drew on an $11.5 billion line of credit to steady itself.

Bank of America aided Countrywide by buying $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.

If Bank of America should convert the shares, it would hold between 16 percent and 17 percent of Countrywide shares. Like other lenders, Countrywide has tightened its credit guidelines and stopped selling some types of adjustable rate loans.

Last month, when asked whether he saw any opportunities to make yet another deal to expand his financial services empire, Bank of America chief executive Ken Lewis casually answered, "Nothing that comes to mind." When asked specifically about Countrywide, Lewis said he would have "to eat about seven years of my words" if he ever made a deal in the mortgage industry.

AP Business Writers Alex Veiga in Los Angeles and Ieva Augstums in Charlotte contributed to this report.

 

[Coronita]

Also interesting article…

 

Gov't Seen to Favor Countrywide Buyout

Thursday January 10, 6:34 pm ET
By Alan Zibel, AP Business Writer

A Bank of America Bid for Countrywide Likely Would Get OK From Government, Analysts Say

WASHINGTON (AP) — A buyout of hobbled mortgage lender Countrywide Financial likely would be approved by regulators, analysts say, because otherwise the company could file for bankruptcy, injecting further uncertainty into the home-loan market.

Bank of America Corp. is in talks to acquire Countrywide, The Wall Street Journal and The New York Times reported Thursday online, citing unidentified people familiar with the deal. The transaction would put the country's largest mortgage lender, which has experienced a surge in home-loan defaults and has seen its share price plummet, in the hands of the largest U.S. bank by market capitalization.

A Bank of America-led buyout is "the one and only hope that (Countrywide) has" to avoid bankruptcy, according to Sean Egan, managing director of independent ratings firm Egan-Jones Ratings Co. Egan-Jones warned earlier this week that Countrywide could "falter" unless it receives an infusion of $4 billion in capital within the next two weeks.

"I cannot imagine that the regulators want Countrywide to go under," said Bert Ely, a banking industry consultant in Alexandria, Va. "I think they're actually quite nervous about that."

A combination of Bank of America and Countrywide would require approval from the Federal Reserve, and possibly other agencies. Banking regulators declined to comment on the reports.

Federal law bars banks from making acquisitions that would increase a bank's market share to 10 percent of U.S. deposits, and Bank of America is nearing that point at 9.88 percent. However, experts disagreed about whether deposits held by Countrywide's federally regulated thrift, Countrywide Bank, would count toward that limit.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by lowering interest rates and losing deposits to competitors.

Federal bank regulators "are not looking to clean up messes like the largest mortgage originator in the country going under," said Bart Nater, a San Francisco-based senior analyst with consulting firm Celent.

Regulators are likely to be far more concerned with whether Countrywide fails — and the economic ramifications of such a large collapse — than with consolidation in the mortgage industry, Nater said.

For the first nine months of 2007, Countrywide was the largest U.S. mortgage lender, while Bank of America ranked fifth, according to trade publication Inside Mortgage Finance. Its publisher, Guy Cecala called the potential deal "by far the most palatable way to resolve Countrywide's problems."

A failure at Countrywide, Cecala said, would have severe ripple effects, including forcing the industry and regulators to figure out who would take on the responsibility of collecting payments for millions of U.S. home loans.

It wasn't clear how quickly a deal might be struck for Countrywide, which has been roiled this week by rumors that a bankruptcy filing was imminent. The Journal reported that negotiations between the two companies could fall apart.

Bank of America, which took on a 16 percent stake in Countrywide over the summer, told The Associated Press it does not comment on market rumor or market speculation. Countrywide did not immediately return calls or e-mails seeking comment.

Countrywide shares climbed $2.63, or 51.4 percent, to close at $7.75 Thursday, while Bank of America shares rose 56 cents, or 1.5 percent, to $39.30.

The New York Stock Exchange said Thursday it asked Countrywide to issue a public statement indicating whether there are any corporate developments that can explain the "unusual" trading activity. The exchange said the Countrywide declined to comment.

Countrywide's stock has plummeted in recent days to record lows amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif., lender and others in the mortgage industry.

Last August, the mortgage lender drew on an $11.5 billion line of credit to steady itself.

Bank of America aided Countrywide by buying $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.

If Bank of America should convert the shares, it would hold between 16 percent and 17 percent of Countrywide shares. Like other lenders, Countrywide has tightened its credit guidelines and stopped selling some types of adjustable rate loans.

Last month, when asked whether he saw any opportunities to make yet another deal to expand his financial services empire, Bank of America chief executive Ken Lewis casually answered, "Nothing that comes to mind." When asked specifically about Countrywide, Lewis said he would have "to eat about seven years of my words" if he ever made a deal in the mortgage industry.

AP Business Writers Alex Veiga in Los Angeles and Ieva Augstums in Charlotte contributed to this report.

 

[Coronita]

Also interesting article…

 

Gov't Seen to Favor Countrywide Buyout

Thursday January 10, 6:34 pm ET
By Alan Zibel, AP Business Writer

A Bank of America Bid for Countrywide Likely Would Get OK From Government, Analysts Say

WASHINGTON (AP) — A buyout of hobbled mortgage lender Countrywide Financial likely would be approved by regulators, analysts say, because otherwise the company could file for bankruptcy, injecting further uncertainty into the home-loan market.

Bank of America Corp. is in talks to acquire Countrywide, The Wall Street Journal and The New York Times reported Thursday online, citing unidentified people familiar with the deal. The transaction would put the country's largest mortgage lender, which has experienced a surge in home-loan defaults and has seen its share price plummet, in the hands of the largest U.S. bank by market capitalization.

A Bank of America-led buyout is "the one and only hope that (Countrywide) has" to avoid bankruptcy, according to Sean Egan, managing director of independent ratings firm Egan-Jones Ratings Co. Egan-Jones warned earlier this week that Countrywide could "falter" unless it receives an infusion of $4 billion in capital within the next two weeks.

"I cannot imagine that the regulators want Countrywide to go under," said Bert Ely, a banking industry consultant in Alexandria, Va. "I think they're actually quite nervous about that."

A combination of Bank of America and Countrywide would require approval from the Federal Reserve, and possibly other agencies. Banking regulators declined to comment on the reports.

Federal law bars banks from making acquisitions that would increase a bank's market share to 10 percent of U.S. deposits, and Bank of America is nearing that point at 9.88 percent. However, experts disagreed about whether deposits held by Countrywide's federally regulated thrift, Countrywide Bank, would count toward that limit.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by lowering interest rates and losing deposits to competitors.

Federal bank regulators "are not looking to clean up messes like the largest mortgage originator in the country going under," said Bart Nater, a San Francisco-based senior analyst with consulting firm Celent.

Regulators are likely to be far more concerned with whether Countrywide fails — and the economic ramifications of such a large collapse — than with consolidation in the mortgage industry, Nater said.

For the first nine months of 2007, Countrywide was the largest U.S. mortgage lender, while Bank of America ranked fifth, according to trade publication Inside Mortgage Finance. Its publisher, Guy Cecala called the potential deal "by far the most palatable way to resolve Countrywide's problems."

A failure at Countrywide, Cecala said, would have severe ripple effects, including forcing the industry and regulators to figure out who would take on the responsibility of collecting payments for millions of U.S. home loans.

It wasn't clear how quickly a deal might be struck for Countrywide, which has been roiled this week by rumors that a bankruptcy filing was imminent. The Journal reported that negotiations between the two companies could fall apart.

Bank of America, which took on a 16 percent stake in Countrywide over the summer, told The Associated Press it does not comment on market rumor or market speculation. Countrywide did not immediately return calls or e-mails seeking comment.

Countrywide shares climbed $2.63, or 51.4 percent, to close at $7.75 Thursday, while Bank of America shares rose 56 cents, or 1.5 percent, to $39.30.

The New York Stock Exchange said Thursday it asked Countrywide to issue a public statement indicating whether there are any corporate developments that can explain the "unusual" trading activity. The exchange said the Countrywide declined to comment.

Countrywide's stock has plummeted in recent days to record lows amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif., lender and others in the mortgage industry.

Last August, the mortgage lender drew on an $11.5 billion line of credit to steady itself.

Bank of America aided Countrywide by buying $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.

If Bank of America should convert the shares, it would hold between 16 percent and 17 percent of Countrywide shares. Like other lenders, Countrywide has tightened its credit guidelines and stopped selling some types of adjustable rate loans.

Last month, when asked whether he saw any opportunities to make yet another deal to expand his financial services empire, Bank of America chief executive Ken Lewis casually answered, "Nothing that comes to mind." When asked specifically about Countrywide, Lewis said he would have "to eat about seven years of my words" if he ever made a deal in the mortgage industry.

AP Business Writers Alex Veiga in Los Angeles and Ieva Augstums in Charlotte contributed to this report.

 

[Coronita]

 

One thing I'd expect to happen if this merger does occur. Ken Lewis will go on a shopping spree to buy other banks with good balance sheets, but nevertheless have been wacked by all the other banking fiascos. This would be used to dilute the toxic waste from CFC with good money from other acquisitions, possibly chopping CFC into pieces to sell. Wouldn't be surprised if after a CFC merger, BofA keep issuing earnings that beat expectations before 'one-time restructuring charges'…They will just happen to take these 'one-time' charges several times over several quarters to the point that no one really cares about or until people stop counting how many of these restructuring charges have been taken.

If I ran into Ken Lewis on the streets right now, I'd ask for his autographed photo. It's very possible our kids will read about him in history books as helping the U.S. out of the Panic of 2007 (if he and BofA pulls if off) 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[HereWeGo]

I wouldn’t go that far. C and MER are yet to chime in. BSC and WM may yet be insolvent.

I don’t see this as ending the crisis, so much as BAC cashing in on their prudent lending standards of the past 5 years.

[kewp]

J. P. Morgan certainly had a cooler name.

[kewp]

J. P. Morgan certainly had a cooler name.

[kewp]

J. P. Morgan certainly had a cooler name.

[kewp]

J. P. Morgan certainly had a cooler name.

[kewp]

J. P. Morgan certainly had a cooler name.

[HereWeGo]

I wouldn’t go that far. C and MER are yet to chime in. BSC and WM may yet be insolvent.

I don’t see this as ending the crisis, so much as BAC cashing in on their prudent lending standards of the past 5 years.

[HereWeGo]

I wouldn’t go that far. C and MER are yet to chime in. BSC and WM may yet be insolvent.

I don’t see this as ending the crisis, so much as BAC cashing in on their prudent lending standards of the past 5 years.

[HereWeGo]

I wouldn’t go that far. C and MER are yet to chime in. BSC and WM may yet be insolvent.

I don’t see this as ending the crisis, so much as BAC cashing in on their prudent lending standards of the past 5 years.

[HereWeGo]

I wouldn’t go that far. C and MER are yet to chime in. BSC and WM may yet be insolvent.

I don’t see this as ending the crisis, so much as BAC cashing in on their prudent lending standards of the past 5 years.

[Coronita]

 

One thing I'd expect to happen if this merger does occur. Ken Lewis will go on a shopping spree to buy other banks with good balance sheets, but nevertheless have been wacked by all the other banking fiascos. This would be used to dilute the toxic waste from CFC with good money from other acquisitions, possibly chopping CFC into pieces to sell. Wouldn't be surprised if after a CFC merger, BofA keep issuing earnings that beat expectations before 'one-time restructuring charges'…They will just happen to take these 'one-time' charges several times over several quarters to the point that no one really cares about or until people stop counting how many of these restructuring charges have been taken.

If I ran into Ken Lewis on the streets right now, I'd ask for his autographed photo. It's very possible our kids will read about him in history books as helping the U.S. out of the Panic of 2007 (if he and BofA pulls if off) 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

 

One thing I'd expect to happen if this merger does occur. Ken Lewis will go on a shopping spree to buy other banks with good balance sheets, but nevertheless have been wacked by all the other banking fiascos. This would be used to dilute the toxic waste from CFC with good money from other acquisitions, possibly chopping CFC into pieces to sell. Wouldn't be surprised if after a CFC merger, BofA keep issuing earnings that beat expectations before 'one-time restructuring charges'…They will just happen to take these 'one-time' charges several times over several quarters to the point that no one really cares about or until people stop counting how many of these restructuring charges have been taken.

If I ran into Ken Lewis on the streets right now, I'd ask for his autographed photo. It's very possible our kids will read about him in history books as helping the U.S. out of the Panic of 2007 (if he and BofA pulls if off) 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

 

One thing I'd expect to happen if this merger does occur. Ken Lewis will go on a shopping spree to buy other banks with good balance sheets, but nevertheless have been wacked by all the other banking fiascos. This would be used to dilute the toxic waste from CFC with good money from other acquisitions, possibly chopping CFC into pieces to sell. Wouldn't be surprised if after a CFC merger, BofA keep issuing earnings that beat expectations before 'one-time restructuring charges'…They will just happen to take these 'one-time' charges several times over several quarters to the point that no one really cares about or until people stop counting how many of these restructuring charges have been taken.

If I ran into Ken Lewis on the streets right now, I'd ask for his autographed photo. It's very possible our kids will read about him in history books as helping the U.S. out of the Panic of 2007 (if he and BofA pulls if off) 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

 

One thing I'd expect to happen if this merger does occur. Ken Lewis will go on a shopping spree to buy other banks with good balance sheets, but nevertheless have been wacked by all the other banking fiascos. This would be used to dilute the toxic waste from CFC with good money from other acquisitions, possibly chopping CFC into pieces to sell. Wouldn't be surprised if after a CFC merger, BofA keep issuing earnings that beat expectations before 'one-time restructuring charges'…They will just happen to take these 'one-time' charges several times over several quarters to the point that no one really cares about or until people stop counting how many of these restructuring charges have been taken.

If I ran into Ken Lewis on the streets right now, I'd ask for his autographed photo. It's very possible our kids will read about him in history books as helping the U.S. out of the Panic of 2007 (if he and BofA pulls if off) 🙂

 

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—– Sour grapes for everyone!

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