Countrywide May Shift to 'More Reliable' Funding, Analyst SaysBloomberg-- Countrywide Financial Corp., the largest U.S. mortgage lender, may need to shift to `more reliable' sources of funding if turmoil continues in the subprime market, according to a report from CreditSights Inc.
The lender has drawn $52.7 billion from sources that may be restricted if worries about subprime mortgage defaults persist, New York-based CreditSights analyst David Hendler wrote in an Aug. 6 report. Countrywide has capacity to shift that funding into more certain sources estimated at $54.4 billion, he wrote.
----
Translation: CFCs lending lines are drying up. This is very, very bad.
19 comments:
F\Rist/!
not a good thing if their funds are drying up.
Not if you are short on them it's not, looks like the makings of a dead cat bounce to me...
Congrats on your position. Hopefully you weren't squeezed out these last few days. Save your paperwork, I smell a potential SEC led class action settlement. Mon open 24, Wed close 29? WTF is up with that? Somebody explain to me what was so much better 56 hours later.
The very very bad thing was not Countrywide specific. If they are seeing "no market" for their products it bodes extremely bad for the entire economy. There's nothing exceptionally special about CFC that they should be suffering a crisis of confidence.
Well I agree with that...the mortgage implosion is going to cause a LOT of heartache across America. Then again, as previously stated numerous times..Americans were living on borrowed money to keep up or even upgrade their standard of living. Like Casey, they believed that refinancing or pulling out equity meant that they had made a profit when in reality, they were just taking out another loan. The economy is going to go into the shithole..the mortgage crisis is just going to be the first big dominoe, followed by builders, contractors, heme depot or lowes, automobiles, big ticket items etc etc as we all realize how broke we all are.
by the way, let's say I bought today at 29.30(short), 4000 shares...can't be any worse than the gspb crap I bought 10 million shares of..heh heh
Of course the recent pop can't possibly have anything to do with http://biz.yahoo.com/ap/070808/countrywide_chair_insider_transaction.html?.v=1
The chairman and chief executive of mortgage lender Countrywide Financial Corp. exercised options for 110,000 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing Tuesday.
In a Form 4 filed with the SEC, Angelo Mozilo reported he exercised options for the shares Tuesday for $9.94 apiece and then sold all of them the same day for $28.06 apiece.
Angelo Mozilo reported he exercised options for the shares Tuesday for $9.94 apiece and then sold all of them the same day for $28.06 apiece
Geez, what a dick...
SEC can't or won't do shit.
The squeeze has been too big with too many different companies. Pain,pain and more pain while the humunguous brokers screw over everyone.
Systemic fraud that is integral to the markets (thanks to the Federal reserve banks).
Best you can do is cover or grab your ankles and hope you can ride it out until it plummets again.
I'm not an 'insider' and I'm guessing anyone posting on this thread isn't either.
One has to wonder what the "more reliable" options are. Surely they would never consider using their retail banking operations as a dumping ground for their loans!
In any case, not to sound like a broken record, but I would once again warn against shorting CFC. Mozilo has kept it up this far, and I don't doubt that he has the ability to keep it up long enough for him to clear out his options. Analysts, including Cramer, are still strong on CFC; if the analysts still think it's worth something, executives may as well, and there's a chance that someone may actually consider buying them out.
Don't get me wrong, CFC doesn't have a chance in the long term, but if you're going short you had better be ready for pain, because I don't think this week's short squeeze will be the last. Most of CFC's option ARM resets are still years out (three to five years, as opposed to two years for most regular ARMs), so they can keep fixing their books for some time yet. Cash flow will be what will kill them, of course, but it's hard to tell when their cash sources will dry up.
Rob
That works out to ~ 2 million. Chump change, but he is probably going to use it to get a good lawyer for the upcoming suits.
Or to help provide cash for the company. What a guy!! :>) :>) :>)
Tan Man has sucked near a half billion over the last few years from a company that is admiting to a cash crunch. That is not leadership. In his "defense" this was merely another scheduled/programmed transaction.
Listen to PV. CFC may be a crumbling empire but it is not a tradeable event.
Breaking news: Bush is getting pummeled by housing bubble questions. Interesting. He seems a little flummoxed as to why this is being asked now. Clearly the bubble is not on the administrations radar.
With respect to CFC, Herb Greenberg says that Fidelity Money Market is loaded up with CFC securities. Guess where my money's been sitting? >:( Time to act like a rational investor and make a panicked run for the teller window. But where to put it?
CFC is solid as the rock of Gibraltar, Jim Cramer told me so. They are sailing on a veritable ocean of sweet liquidity and that shall never change. Amen.
edgar:
"They are sailing on a veritable ocean of sweet liquidity and that shall never change. Amen."
Indeed.
And just in case there be uncharted reefs and shoals that might founder them, I'd observe that CFC and its other ilk might wish to cast lobbying efforts on behalf of continued American employment.
A factory closure here, a lay-off there, a few rounds of out-sourcing, and that deep liquid ocean of a sudden becomes shallower than a pool of piss on a hot deck-plate.
With respect to CFC, Herb Greenberg says that Fidelity Money Market is loaded up with CFC securities. Guess where my money's been sitting?
Oh shat, me too. I wasn't aware of this. It's been sitting there for months getting 5%, but I thought it was at least safe harbor.
Today was a day that is vindication for everyone who's been saying that something wasn't right.
Well, hope some friends of mine listen to my advice and rent.
OH, and hi rob! Im still around, mostly lurking b/c real life is busy, but I think ill be sticking round here
CFCF is the devil, but this is going to hurt us all.
Post a Comment