Countrywide

[Fishhead24]

This housing market is only going to get worse over the next 12 months ladies and gentlemen.

Hope the citizens of this country can handle their net worth declining by 25+%.......most can..........but many will panic.

[johnnylovescandy]

ya, better max your mortgage right now...

[Fishhead24]

, Countrywide Financial Corp. operates the nation's largest mortgage company and has been mentioned prominently in new reports as it has struggled to secure the financing it needs amid a deepening housing recession and rising mortgage defaults. Countrywide also operates a bank and recently raised the rates on some savings accounts and CDs to the highest levels offered by financial institutions tracked by Bankrate.com, a service that helps consumers compare rates. People depositing at least $10,000 in Countrywide's SavingsLink online savings account can earn 5.5 percent, and a one-year CD is paying 5.65 percent.

In contrast, banks that have not appeared in headlines on mortgage-related problems are paying much less. LaSalle Bank, for example, is offering 3.55 percent on a one-year CD, according to Bankrate.com.

It's not unusual for banks with shakier finances or negative attention in the news to raise rates to lure savers that might otherwise be reticent. GMAC bank, for example, has been offering relatively high rates while General Motors has been dealing with weak sales in the car business. A one-year CD pays 5.15 percent.

While investors may wonder if they dare take a chance in such situations, Chicago attorney Paul Bauch says they need focus on only two factors -- whether the institution is covered by the FDIC and whether the account a saver might be using is fully covered by the FDIC protection.

When the FDIC insures an account at a bank, it promises to protect a person's savings up to $100,000. Generally, that means that savings accounts and CDs are covered, but you cannot take it for granted.

Not all financial institutions have the insurance. If you are saving money in a money market mutual fund or some other mutual fund, it is not protected.

Before depositing your money, Bach says you should make sure your money will be protected. And if you are saving more than $100,000, put the excess over $100,000 in another FDIC-insured institution so you protect all your money.

Countrywide does have FDIC insurance, and banking analyst Bert Ely says he would not hesitate to deposit money there despite its recent troubles. He notes that a $2 billion investment in the company by Bank of America Corp. on Wednesday will be a "life ring" for the company. But because of FDIC insurance, "no matter what happens to Countrywide, the deposits will be OK."

Even people worried about a bankruptcy do not have to worry.

Attorney Harley Goldstein said the bank could be immune even if the corporate holding company filed for Chapter 11.

If the bank did fail, it would likely be auctioned by the FDIC to a new owner.

[pig4bill]

From last week's story:
http://www.latimes.com/business/prin...trywide17aug17,0,5944637.story?coll=la-headlines-pe-business

This part is funny:
[ QUOTE ]
Bill Ashmore drove his Porsche Cayenne to Countrywide's Laguna Niguel office and waited half an hour to cash out $500,000, which he then wired to an account at Bank of America.

"It's because of the fear of the bankruptcy," said Ashmore, president of Irvine's Impac Mortgage Holdings, which escaped bankruptcy itself recently by shutting down virtually all its lending and laying off hundreds of employees.

"It's got my wife totally freaked out," he said. "I just don't want to deal with it. I don't care about losing 90 days' interest, I don't care if it's FDIC-insured -- I just want it out."

[/ QUOTE ]

The president of a local mortgage company is probably more familiar with what's going on there than the average bear (or bull).

[gonebroke2]

CFC = ENRON
Enjoy Fishhead [img]/images/graemlins/grin.gif[/img]

[Uglyowl]

Interesting NY Times article today:

http://www.nytimes.com/2007/08/26/bu...pagewanted=all

[Jcrew]

I'm gamblin'. Bought at 21 a week or two ago and selling one month OTM covered calls against the shares. Those options premiums are too high not to take a shot. I should be covering when the price drop down like that and rewrite them when they shoot back up on rumours. Hopefully they can stay solvent for at least a few months.

Edit: I exited all of my bearish positions a few weeks ago and this is my only position.

[gonebroke2]

Single digits for CFC is around the corner. Shorting it all the way to 0.

OT - Where did Fishhead24 go?

[Phone Booth]

[ QUOTE ]
Single digits for CFC is around the corner. Shorting it all the way to 0.

OT - Where did Fishhead24 go?

[/ QUOTE ]

Well not so much...

What did everyone think about their call? I don't have a strong opinion at the current price, but that MSR is eventually going to come in handy.

[gonebroke2]

[ QUOTE ]
[ QUOTE ]
Single digits for CFC is around the corner. Shorting it all the way to 0.

OT - Where did Fishhead24 go?

[/ QUOTE ]

Well not so much...

What did everyone think about their call? I don't have a strong opinion at the current price, but that MSR is eventually going to come in handy.

[/ QUOTE ]

They are going bust. Just another suckers rally like what happened when it ran from 15 to 20 when they had news about B of A. Been short since mid 30s and will cover at 0.