Countrywide Shares Fall After Report Lender Needs More Capital

What a difference a few month made..... Mozillo deserves every Schadenfreude that is out there.....Make sure you don´t miss this Video "Cramer praising Countrywide and Mozillo" just a few month ago. The quotes from Cramer and Mozilla are just priceless! A classic!

Welch ein Unterschied doch ein paar Monate ausmachen......Der CEO Mozillo verdient alle nur erdenklichen Schadenfreude ..... Ich kann jedem dieses erst ein paar Monate alte Interview mit dem Interview mit dem CEO empfehlen. Es ist nicht zu fassen das diese Zitate und Aussagen erst 6 Monate alt sind.... LOL!

Thanks to Stock Mania

Countrywide Shares Fall After Report Lender Needs More Capital
Sept. 11 (Bloomberg) -- Countrywide Financial Corp., the biggest U.S. mortgage lender, fell almost 5 percent in early trading after the New York Post reported that a second multibillion-dollar bailout ( should be investment) of the company is being negotiated.

``Countrywide is in desperate need of cash right now to continue funding mortgages, and the credit markets are still largely closed to them,'' the newspaper said, quoting a source familiar with the company.

> Maybe they shouldn´t have waste their borrowed money buying back stocks just a few month ago.....

> Es wäre wohl besser gewesen während der letzten Monate nicht mit geborgtem Geld eigenen Aktien zurückzukaufen......

Countrywide .... Genius At Work......
Countrywide conference call review october 2006

"Additionally, as previously announced, management is executing a capital optimization plan and the Board of Directors has authorized a share repurchase program of up to $2.5 billion. In connection with this program, the Company intends to repurchase $1 billion to $2 billion of its common stock in the fourth quarter financed through the issuance of high equity-content debt securities."

from May 2007!
Countrywide Financial Corporation Announces Agreement to Sell $2 Billion of Series A Floating Rate Convertible Senior Debentures Due 2037 and $2 Billion of Series B Floating Rate Convertible Senior Debentures Due 2037

Countrywide Financial will use a portion of the net proceeds from this offering to fund repurchases of up to 23 million shares of its common stock simultaneously with this offering and expects to use the remainder for general corporate purposes.

> Needless to say that during that time Mozillo has sold lots of shares.....

> Überflüssig zu erwähnen das der CEO während dieser Zeit Tonnen von Aktien abgeladen hat.....

Thanks to The Mess That Greenspan Made

Goldman Sachs Group Inc. and the law firm Wachtell Lipton Rosen & Katz are working with Calabasas, California-based Countrywide to negotiate a cash infusion similar to the $2 billion package Bank of America Corp. agreed to provide last month, the newspaper said. Possible lenders include JPMorgan Chase & Co. and Citigroup Inc., according to the Post.

Countrywide said last week it would eliminate as many as 12,000 jobs, or 20 percent of its workforce, after investors stopped buying loans and lenders alarmed by rising subprime defaults refused to provide capital to mortgage companies.

Countrywide was at $16.36 in early trading, down 4.9 percent from the close yesterday on the New York Stock Exchange. The shares have lost almost 60 percent of their value this year.

Countrywide was forced to tap $11.5 billion of emergency financing last month to replace hard-to-sell commercial paper.

Disclosure: Short KBW Mortgage Finance Index (including CFC)