countrywide (aka enron) cans 12k employees
 

Hey Fishhead...let the bank run begin. No doubt in my mind this stock is going bankrupt.

http://www.marketwatch.com/news/story/co...mp;siteid=yhoof

Re: countrywide (aka enron) cans 12k employees
 

This is probably not the end of it. They started on Tuesday when they announced 900 layoffs. All week they've been canning people and waited until after hours on Friday to announce the big number. They hope nobody notices, or forgets by Monday.

From what people have been saying, it could be over 20,000 total.

Re: countrywide (aka enron) cans 12k employees
 

[ QUOTE ]
Hey Fishhead...let the bank run begin. No doubt in my mind this stock is going bankrupt.

http://www.marketwatch.com/news/story/co...mp;siteid=yhoof

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You could be right...........not that I'm overly worried(FDIC insured), but will soon be slowly moving my money out of my Countrywide savings account and into a more stable savings platform.

Re: countrywide (aka enron) cans 12k employees
 

2+2 Thread from back in Feb '07.

Cramer was touting CFC at $45 back then as being the beneficiary of a subprime meltdown of its competitors.

My thoughts from that thread,
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This reminds me of the bursting of the tech bubble. A lot of weak stocks went to zero and were never bargains at any price. Meanwhile, the best companies held up for a while but finally fell to levels that were almost unthinkable near the top of the bubble.


[/ QUOTE ]

PairTheBoard

Re: countrywide (aka enron) cans 12k employees
 

if my mortgage is with countrywide do i have anything to worry about?

tc

Re: countrywide (aka enron) cans 12k employees
 

CALABASAS, Calif., Sept. 6 /PRNewswire-FirstCall/ -- Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider, will present on Tuesday, September 18, 2007 at the Bank of America 37th Annual Investment Conference in San Francisco.

Management will be making the keynote lunch presentation, which is expected to begin at approximately 12:20 p.m. PDT. Attendance at the conference is by invitation only; however, an audio webcast will be available on Countrywide's Investor Relations website at http://www.countrywide.com on the day of the event.

Participants will need to allow adequate time to download any software necessary for the webcast. The audio archive of this event will be available on Countrywide's Investor Relations website through Friday, October 5, 2007.

Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide's website at http://www.countrywide.com.

Re: countrywide (aka enron) cans 12k employees
 

[ QUOTE ]
if my mortgage is with countrywide do i have anything to worry about?

tc

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http://www.azcentral.com/business/ho...ampA01-ON.html

Re: countrywide (aka enron) cans 12k employees
 

Hey guys you are forgetting they company officials say that the job cuts may be smaller if the market improves.... (sarcasm)

http://online.wsj.com/article/SB1189..._us_whats_news

Post deleted by Mat Sklansky
 

Re: countrywide (aka enron) cans 12k employees
 

blueman, because there is a very good chance the company is going to go under. The CEO already sold all $450 million of his shares, that shows you how much confidence the public should have.

Re: countrywide (aka enron) cans 12k employees
 

Countrywide's strategy is to rely on its savings bank to provide funding for lending. That funding comes from deposits, as well as borrowings from the Federal Home Loan Bank system. The goal is to end reliance on short-term borrowings from jittery Wall Street firms and other creditors.

THIS WOULD BE ME.....:(

Re: countrywide (aka enron) cans 12k employees
 

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I really don't get it. Usually when a company fires a bunch of people the market reacts to that positively and the stock goes up. Why is it a bad thing in this instance?

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Because the reason they are laying off so many people is they are closing branches and processing centers. If this company somehow survives, it will be much smaller than it was.

Re: countrywide (aka enron) cans 12k employees
 

One thing not mentioned is that it's obvious that even if CFC survives and resolves it's short term funding issues, they'll be significantly de-leveraged and doing a lot less loan production which means earnings will be way, way down if existent at all.

Re: countrywide (aka enron) cans 12k employees
 

I'm very skeptical of Countrywides long term potential. Lending looks very bleak for the future and it seems that any and all lending for the coming years will have to be break even lending where the borrower gets a FAIR rate and the lender gets a TINY profit and I just don't see the volume or the quality of borrowers needed to make this fair lending market profitable for lenders.

Re: countrywide (aka enron) cans 12k employees
 

Meanwhile they keep paying 5.4% to customers for their savings.

Re: countrywide (aka enron) cans 12k employees
 

Well yield curve from 2-10 is steepening. With rate cuts yield curve could end up being steep from 0-10. Conforming loans have plenty of liquidity in short term funding. So with decent spreads between short term and long term rates we could see some lenders do very well actually IMO FWIW.

Re: countrywide (aka enron) cans 12k employees
 

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Meanwhile they keep paying 5.4% to customers for their savings.

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That may change though and eventually will. Lenders leverage the spread between short term and long term rates so I think develeraging is going to hurt CFC earnings alot.

Re: countrywide (aka enron) cans 12k employees
 

I agree with adios. It's easy for Countrywide to give 5.4% interest on money when the money they are paying out in interest <u>DOESN'T EVEN EXIST</u> they are paying it out in debt and are only allowed to pay out the money because they are betting on their own survival, they are claiming that the money will exist at some point in the future. THE EXACT SAME THING HAPPENED IN ENRON. By lying to the public they were allowed to perpetuate the image that their company was worth $30+ something per share, once the whole ship had sank it was evident that those shares were only worth a few cents in real world money. wiki: MARK TO MARKET. The company MARKS their price and the market ASSUMES it to be true (until proven otherwise).

Re: countrywide (aka enron) cans 12k employees
 

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I really don't get it. Usually when a company fires a bunch of people the market reacts to that positively and the stock goes up. Why is it a bad thing in this instance?

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because countrywide have been massively cash flow negative for months now and they are laying people off because they've tapped all their credit and can't make payroll anymore. their financials are largely a product of counting negative amortization of their assets as income. countrywide as we know it won't exist in 2 months.

Re: countrywide (aka enron) cans 12k employees
 

[ QUOTE ]
[ QUOTE ]
I really don't get it. Usually when a company fires a bunch of people the market reacts to that positively and the stock goes up. Why is it a bad thing in this instance?

[/ QUOTE ]

because countrywide have been massively cash flow negative for months now and they are laying people off because they've tapped all their credit and can't make payroll anymore. their financials are largely a product of counting negative amortization of their assets as income. countrywide as we know it won't exist in 2 months.

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Anyone else feel this way?