Countrywide dogs howling over bare bones

Just when BofA maybe thought all was well with their purchase of Countrywide, suddenly a pack of dogs wants to (and may well) force Countrywide into bankruptcy to grab assets. Why? Because Countrywide didn’t tell holders of certain of their convertible notes that, due to them being bought, the notes could be cashed in. BNY Mellon as a custodian holder of these notes has sued.

And what is unique in this case is the pack of dogs (Countrywide bondholders), now have a vested interest in pushing Countrywide into bankruptcy so they can get some of the meat (Countrywide’s servicing unit), instead of worthless bones (Countrywide’s Debt).

This must be that “invisible hand of the marketplace” capitalists are so proud of.

4 Comments »

Sen. Dodd claims he wants to reform the very same industry where he got low rate mortgages personally ok’ed by Countrywide CEO Angelo Mozilo.

Dodd’s office quickly responded to the potentially costly revelation with a statement: “The Dodds received a competitive rate on their loans. They did not seek or anticipate any special treatment, and they were not aware of any.”

That no-denial denial ain’t gonna play. He was part of the “Friends of Angelo” group yet says he was shocked, just shocked to learn he got mortgages at below market rates.

This has removed him from the possibility of being Obama’s VP choice. Dodd is (was?) a popular senator with formerly squeaky clean reputation in Connecticut.

The Heritage Foundation snarkily says The Countrywide Bailout Explained.

(You already figured out that Dodd was a major player in the bill being passed, right?)

No Comments »

Senators Dodd and Conrad are among the government officials who scored V.I.P. loans from C.E.O. Angelo Mozilo.

Countrywide CEO Mozilo personally ok’ed the loan terms too and the senators (and other politically connected people) received better deals than ordinary homeowners. How cozy. Some might even call it corrupt.

No Comments »

I’m guessing CEO Angelo “If I can’t drive a company into bankruptcy and keep billions while doing so, then I fear socialism is coming to the US” Mozilo may well be having some sleepless nights.

Can you say “Enron?” I knew you could. And Mozilo doesn’t have a US president running interference for him either.

No Comments »

BofA is in “advanced talks” to buy Countrywide.

(Their original stake in Countrywide, taken a few months back, was at $18 a share. Countrywide closed today at $7.)

No Comments »