Countrywide
This story is tailor made for banker haters, but I offer one counterpoint for consumer borrowers.
Did you know that Bank of America kept the Countrywide name after its bargain purchase in 2008, and that “it would consider putting the unit into bankruptcy if litigation losses threaten to cripple the parent”? Here’s the alphabet soup of entities BofA is juggling: The transaction was completed July 1, 2008 with Countrywide Financial Corporation
Today Henry Blodget examines why Bank of America is getting hammered. Most telling is this statement: Bank of America has about $222 billion of “book value”–the amount that’s supposedly left over when you subtract Bank of America’s stated liabilities from its stated assets. Countrywide, which was taken over by Bank of America, was the 800
Facebook Worth $50b After Goldman Deal While everyone was working up clever holiday status updates on Facebook, the company was working up a deal with Goldman Sachs that places its value at $50b. NYT Dealbook’s report on the topic also previews the year’s hottest tech companies, and StockTwits $FBOOK feed will keep you up to
I should have listened to my mom and become a lawyer. As WaMu was collapsing in 2008, the FDIC brokered a good deal whereby they seized WaMu then JP Morgan Chase bought it for $1.9b. But the speedy two-day deal now leaves a giant question: who should cover billions in WaMu legal liabilities? Chase says
Median Income for CA vs. US The FDIC does more than shut down banks on Fridays. It produces the Regional Economic Conditions (RECON) report that details economic information at the state, MSA (Metropolitan Statistical Area), and county levels. It is helpful to analyze risks facing banks and also for consumers to get a basic look
Subprime Investment Comeback? As an investor would you rather own IBM or Pepsi stock, or subprime loans? Think hard… and buy them while you can? Apparently, subprime loans are making a comeback (investing, not originating). Remember that these older subprime loans are like old cars: the new ones are better, but the old ones that
Citi Revenue $25b in Quarter Citgroup announced earnings this morning with earnings per share of 15 cents versus a $0 expected. Revenue was $25 billion versus $21 billion anticipated. Like BofA’s, and Chase’s, these are solid results, but unfortunately overshadowed. FDIC’s Bank Failure Update The FDIC closed down several more banks on Friday. Tamalpais Bank
“Most of the stuff people worry about ain’t never gonna happen anyway.” But in this case, I bet a change will be made. Everyone knows the drill: small originators sell loans to mid-tier investors such as AmTrust or Franklin American, who in turn sell their loans to companies like Wells, Chase, Bank of America, or
“Most of the stuff people worry about ain’t never gonna happen anyway.” But in this case, I bet a change will be made. Everyone knows the drill: small originators sell loans to mid-tier investors such as AmTrust or Franklin American, who in turn sell their loans to companies like Wells, Chase, Bank of America, or
TALF Q&A Here’s everything that you wanted to know about TALF but was afraid to ask. Stimulus By State And here’s everything you wanted to know about how the stimulus activity impacts your state. Countrywide (“Countryfine”) On the Simpson’s Warehouse Lending Getting Smaller Banks in the warehouse lending business are making difficult decisions with regard
The good thing about driving all night to get back home after watching a NASCAR race in Las Vegas is… well, I can’t think of one. (It was for my son’s birthday.) But there is certainly a better picture of how the day is shaping up. Bank of America Ups FICO Requirements Countrywide, who is
My 16-yr old, who is preparing for the SAT tests, was (coincidentally?) reading an article the other day titled, “Six-Figure Jobs You Don’t Need A College Degree For.” After ending their title sentence in a preposition, the article goes on to talk about air traffic controllers, construction workers, plumbers, ultrasound technicians, “locomotive engineer”, and of
After failing and being seized by the FDIC earlier this year, Indymac is now on the block to be bought within 90 days. The FDIC has taken on the role of investment bank as the bank failures mount. After the Indymac failure depleted the FDIC fund, FDIC head Sheila Bair took on a new approach,
Thanks Mary B. for this example of recent correspondence: Dear Sirs, In view of current developments in the banking market, if one of my checks is returned marked “insufficient funds”, does that refer to me? Or to you? Yours Faithfully, Signed – Bank Customer Is The Fed Selling Treasuries to Buy Treasuries? When I read
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