BloggingStocks

Fannie Mae's new program. Is this a winner or what?

Connie Madon — Mon, 12 Jan 2009 14:15:00 EST

Filed under: Deals, Bank of America (BAC), Countrywide Financial (CFC), Personal finance, Housing, Recession, Financial Crisis

Not to worry, your mortgage is $200,000 and your house is worth only $150,000. Fannie Mae to the rescue. Fannie Mae will let you sell your home at $150,000 and Fannie Mae will take the loss. You don't even need a buyer for your home!

This situation is called being "upside down," which means that you owe more than the house is worth. Selling your home when you are "upside down" is called a "short sale."

This is not a new practice. It has been used before but never without a buyer. Most deals fell through because the paper work took too long or because lenders, servicing firms and mortgage guarantors rejected the sales price. For these reasons, "short sales" have a bad reputation among real estate agents.

Continue reading Fannie Mae's new program. Is this a winner or what?

Fannie Mae's new program. Is this a winner or what? originally appeared on BloggingStocks on Mon, 12 Jan 2009 14:15:00 EST. Please see our terms for use of feeds.

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Merrill & Wachovia give up the ghost

Sheldon Liber — Fri, 02 Jan 2009 16:40:00 EST

Filed under: Competitive strategy, Bank of America (BAC), Merrill Lynch (MER), Countrywide Financial (CFC), Wachovia Corp (WB), Wells Fargo (WFC), Stocks to Buy, Best Stocks for 2009

We start the new year with the disappearance of two household names in the financial world, Merrill Lynch which sold itself to Bank of America, (NYSE: BAC) fearing the worst of the broadly deteriorating financial markets; and Wachovia that not only feared the worst but lived through it only long enough to be acquired by Wells Fargo (NYSE: WFC). Both transactions completed yesterday while the market was closed.

The market has been up all day and both BAC and WFC can be upbeat as two of the world's survivors of the 2008 minefields that blew up some of the largest and most revered names in many generations.

The BAC deal propels it to be the No. 1 financial institution in the United States with about $2.7 trillion in assets. Merrill Lynch ends a 94 year run. Earlier in the year BAC acquired Countrywide Financial. These two deals allow Bank of America to stand tall as he largest originator and servicing company for new loans, just when home refinancing may take off based on new lower rates becoming available. It may be able to expand financial services when the world is hoping for even a modest recovery.

Continue reading Merrill & Wachovia give up the ghost

Merrill & Wachovia give up the ghost originally appeared on BloggingStocks on Fri, 02 Jan 2009 16:40:00 EST. Please see our terms for use of feeds.

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Serious Money: eBay auction off PayPal -- create bidding war

Sheldon Liber — Thu, 13 Nov 2008 10:00:00 EST

Filed under: Deals, Rants and raves, Competitive strategy, Google (GOOG), Microsoft (MSFT), eBay (EBAY), Amazon.com (AMZN), Citigroup Inc. (C), JPMorgan Chase (JPM), American Express (AXP), Bank of America (BAC), Merrill Lynch (MER), MasterCard Inc'A' (MA), Countrywide Financial (CFC), Goldman Sachs Group (GS), Wachovia Corp (WB), Washington Mutual (WM), Wells Fargo (WFC), Serious Money, Visa Inc. (V)

This is the third in a four part series which I hope gives buyers, sellers, shareholders and dare I say management a platform for discussion.

The most valuable asset eBay (NASDAQ: EBAY) has is PayPal, the dominant internet financial transaction facilitator. When I started imagining what might happen if eBay started auctioning off its parts I envisioned that PayPal would be worth the highest premium.

I think there would be dozens of interested companies that would find it highly advantageous to acquire PayPal.

The reason eBay bought PalPal in the first place was that they had first hand experience trying to compete with it when it was a separate company, and even with its huge base of customers, eBay could not build much traction. As the old saying goes, "if you can't beat them, join them", or in this case buy them.

For starters, all of the major credit card companies would be very interested with MasterCard Inc'A' (NYSE: MA) and Visa (NYSE: V) leading the bidding and beleaguered American Express (NYSE: AXP) trying to find a way too.

Then there are the few prospering banks still left standing that would have to give this potential acquisition strong consideration. Bank of America (NYSE: BAC) which has already bought out Countrywide Financial and will soon add Merrill Lynch (NYSE: MER) would find this a must have. JPMorgan Chase (NYSE: JPM) has added Bear Stearns and Washington Mutual (NYSE: WM) to its group of enterprises and might be best suited to expand the company given its growing resources. Wells Fargo (NYSE: WFC) that recently agreed to acquire Wachovia Corp (NYSE: WB) after staying on the sidelines most of the year might want PayPal, but I do not think it would pay up.

Continue reading Serious Money: eBay auction off PayPal -- create bidding war

Serious Money: eBay auction off PayPal -- create bidding war originally appeared on BloggingStocks on Thu, 13 Nov 2008 10:00:00 EST. Please see our terms for use of feeds.

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The beggars of Wall Street

Sheldon Liber — Mon, 06 Oct 2008 10:58:00 EST

Filed under: Rants and raves, Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC), Merrill Lynch (MER), Federal Natl Mtge (FNM), Countrywide Financial (CFC), Amer Intl Group (AIG), Wachovia Corp (WB), Wells Fargo (WFC), Bear Stearns Cos (BSC), Recession

Everything is upside down these days. The folks with all the money and multi-million dollar bonuses are begging for a handout on the pretext that the economy will crash if they do not get one. We're not talking money for coffee or a snack, we're talking billions of dollars.

It is crashing anyway, or at least sinking. It is just a matter of what it takes down along the way. Apparently, the folks at the Treasury and Federal Reserve are now convinced that it will be everything.

The survivors are pawing at the defeated as Wells Fargo tries to grab Wachovia despite its previous tentative agreement with Citigroup Inc. (NYSE: C). While Citigroup gained a point in Wachovia deal over the weekend, the balance has since tilted in favor of Wells Fargo again.

Bank of America (NYSE: BAC) gobbled up Countrywide (done) and Merrill Lynch (NYSE: MER) (a work in progress), while JPMorgan Chase (NYSE: JPM) corralled Bear Stearns and Washington Mutual (NYSE: WM).

Sadly, only the federal government was big enough to swallow the problems of American International Group (NYSE: AIG), Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). Otherwise,those in the know think world financial markets would have crumbled due to the collateral damage, (pun intended).

When I posted Congress is screwing up -- think backstop not bailout!, I was concerned with the psychological effect as much as the financial effect of not approving the funding, but no doubt the people suffering the most are not those who created the pain.

Continue reading The beggars of Wall Street

The beggars of Wall Street originally appeared on BloggingStocks on Mon, 06 Oct 2008 10:58:00 EST. Please see our terms for use of feeds.

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Trading strategies for October, Payout jackpots for credit crunch CEOs & small biz woes - Today in Money 10/1

Allan Halprin — Wed, 01 Oct 2008 09:21:00 EST

Filed under: Google (GOOG), Wal-Mart (WMT), AT and T (T), Citigroup Inc. (C), Money and Finance Today, Merrill Lynch (MER), Countrywide Financial (CFC), Yum Brands (YUM), Southwest Airlines (LUV), Contl Airlines'B' (CAL)

In the News:

· Are Markets Headed Higher or Lower on This Roller Coaster Market Ride?

· Mortgage Applications Plunge

· AT&T Says Credit Woes Crimping Operations

· Wal-Mart Cuts Prices on 10 Hot Holiday Toys

· Automakers Set for Big Sales Declines

· Nasdaq to Void Unusual Google Trades

· Taco Bell, KFC, Pizza Hut Owner to Add Calorie Info on Menu Boards

· It's D-Day for Hedge Funds as Redemptions Roll In

· Southwest & Continental Airlines Are Most Reliable Airlines in America

· Wall Street's Tumult Has People Very Scared About Manhattan Real Estate

· One of the World's Best Resorts Hit By Hard Times

Trading Strategies for October
Following the most volatile September in memory, here are 10 ways to play the year's scariest month.
http://www.marketwatch.com/newscommentary/tradingstrategies

Payout Jackpots for Credit Crunch CEOs
Though they were at the helm of companies that were bruised or broken by the credit crunch, these 12 CEOs were still offered big severance packages when they were shown the door. They include Merrill Lynch's Stan O'Neal who got $161 million, Citi's Chuck Prince $105 million and Countrywide's Angelo Mozilo $100 million to name a few.
http://www.cnbc.com/id/26959512

Continue reading Trading strategies for October, Payout jackpots for credit crunch CEOs & small biz woes - Today in Money 10/1

Trading strategies for October, Payout jackpots for credit crunch CEOs & small biz woes - Today in Money 10/1 originally appeared on BloggingStocks on Wed, 01 Oct 2008 09:21:00 EST. Please see our terms for use of feeds.

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Confidence in global economy falls on Lehman, AIG concerns

Joseph Lazzaro — Wed, 17 Sep 2008 12:23:00 EST

Filed under: Forecasts, Bad news, Merrill Lynch (MER), Federal Natl Mtge (FNM), Countrywide Financial (CFC), Economic data, IndyMac Bancorp (IMB), Lehman Br Holdings (LEH), Bear Stearns Cos (BSC), Housing, Recession

Confidence in the global economy fell in September, as concern mounted about the health of the U.S. economy and global financial system following the bankruptcy of Lehman Brothers and the near bankruptcy of AIG, which prompted a U.S. Federal Reserve intervention, a new survey indicated.

The Bloomberg Professional Global Confidence Index fell to 11.3 in September from 14.1 in August among U.S. respondents. The Western European index fell to 12.6 from 12.9. Readings below 50 indicate negative sentiment.

Economist Richard Felson, who did not participate in the Bloomberg survey of 3,000 Bloomberg Terminal users, told BloggingStocks Wednesday too many financial concerns and bankruptcies are occurring over a short period for business professionals to be positive.

"Countrywide, Bear Stearns, Indymac, Freddie, Fannie, Lehman, Merrill, and now AIG. Wow, that's an awful lot for any economic system to absorb in five years, let alone one year," Felson said. "Executives and other business professionals are justifiably concerned about credit access for business operations and about declining demand due to rising unemployment. The major U.S. economic metrics are not moving in a positive direction right now and the nation needs to correct that."

Continue reading Confidence in global economy falls on Lehman, AIG concerns

Confidence in global economy falls on Lehman, AIG concerns originally appeared on BloggingStocks on Wed, 17 Sep 2008 12:23:00 EST. Please see our terms for use of feeds.

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Indiana attorney general sues Countrywide Financial too

Zac Bissonnette — Mon, 25 Aug 2008 09:16:00 EST

Filed under: Law, Scandals, Bank of America (BAC), Countrywide Financial (CFC)

Bank of America's (NYSE: BAC) newly-acquired Countrywide Financial is being sued by yet another state attorney general, with Indiana's Steve Carter announcing on Sunday that he's suing the company for deceiving borrowers into loans that they could not afford and/or were not aware of the associated risks.

In a press release announcing the suit, Carter said that "These unfair lending practices may have harmed thousands of people and, in turn, negatively affected our communities and neighborhoods throughout the state." According to Carter, "The most common misrepresentations uncovered to date have been on 1) pre-payment penalty terms, and 2) the time period in which interest rates would be recalculated (resetting ARMs - adjustable rate mortgages)."

Carter is seeking penalties of up to $15,500 per violation, plus investigative costs and restitution.

Countrywide had been sued many times before the Bank of America acquisition, and BofA knew that there would be more to come. But for a deal that is widely considered to have been too expensive and too risky, the distraction and headache of all these lawsuits would seem to make this a deal Ken Lewis probably regrets. Of course, he won't say that publicly.

Indiana attorney general sues Countrywide Financial too originally appeared on BloggingStocks on Mon, 25 Aug 2008 09:16:00 EST. Please see our terms for use of feeds.

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Countrywide sued by Connecticut too!

Zac Bissonnette — Thu, 07 Aug 2008 07:00:00 EST

Filed under: Law, Marketing and advertising, Scandals, Bank of America (BAC), Countrywide Financial (CFC)

Connecticut Attorney General Richard Blumenthal has sued Bank of America's (NYSE: BAC) Countrywide Financial alleging that the company misled borrowers into taking on risky loans that they couldn't afford. California, Illinois, and Florida have filed similar charges, and it seems likely that more will follow.

Blumental said that "Countrywide conned homeowners into mortgages they simply could not afford," and wants Countrywide to amend mortgages that violated state laws and make restitution to affected borrowers. Blumenthal is also seeking fines of $100,000 per violation of state banking laws, and up to $5,000 per violation of state consumer protection laws.

Continue reading Countrywide sued by Connecticut too!

Countrywide sued by Connecticut too! originally appeared on BloggingStocks on Thu, 07 Aug 2008 07:00:00 EST. Please see our terms for use of feeds.

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Let them eat cake: Ex-Countrywide exec takes family on African Vacation ... on Countrywide's jet

Julie Tilsner — Sun, 03 Aug 2008 11:40:00 EST

Filed under: Bank of America (BAC), Countrywide Financial (CFC), Rich in America

Some things never change.

David Sambol, the out-going president of kaput mortgage giant Countrywide Financial Corp., is taking his family on an African vacation -- on Countrywide's Gulfstream IV.

Yes, the guy in charge of the company that sold hundreds of thousands of suspect mortgages to people who couldn't afford them is leaving on a jet plane, for a nice three-week-long vacation in Africa with his family.

But you know, it's been a stressful year for Mr. Sambol, what with his company nearly collapsing and that stressful fire sale to Bank of America (NYSE: BAC). Not to mention being hauled before Congress to account for his part in helping facilitate the global credit crisis.

Marie Antoinette would have understood completely. "Let them take a vacation," she would have said. "An African safari would be nice. The kids will love it."

Continue reading Let them eat cake: Ex-Countrywide exec takes family on African Vacation ... on Countrywide's jet

Let them eat cake: Ex-Countrywide exec takes family on African Vacation ... on Countrywide's jet originally appeared on BloggingStocks on Sun, 03 Aug 2008 11:40:00 EST. Please see our terms for use of feeds.

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Outrageous executive severance perks - talk about chutzpah!

Melly Alazraki — Tue, 22 Jul 2008 13:46:00 EST

Filed under: Management, General Electric (GE), Scandals, Bank of America (BAC), Countrywide Financial (CFC), Contl Airlines'B' (CAL)

Stockholders of publicly traded companies, as well as the general public, have recently become outraged with executive compensation and their hefty bonuses, especially in light of the mounting losses at some companies. It seems that no matter what happens or what they do, executives somehow always win. They win big during their employment, and sometimes even more as they retire. With all that money, you'd think that haggling over some perks in their package would be beneath them . . . but it isn't.

The recent outrageous perk award goes to Continental Airlines (NYSE: CAL) CFO Jeffrey Misner who asked for and was granted a free lifetime parking spot at Jacksonville International Airport. As long as the 54-year-old retiree lives within 200 miles of Jacksonville Airport, and providing Continental has operations at the airport, Misner will have a free parking place. Of course, that's just a perk that goes with a $2,997,000 retirement pay.

At the beginning of the year, many were shocked to hear that Countrywide Financial Corp. -- the poster child of the subprime mortgage meltdown, which has been bought by Bank of America (NYSE: BAC) -- CEO Angelo Mozilo was going to receive a $36.4 million cash severance payments, $400,000 per year for consulting services, and perks including the use of a private airplane. He walked away from most of these after a public outcry. Don't feel bad though, he still left with at least $23.8 million.

It just doesn't cease to amaze me how some people have the nerve to ask for certain perks in addition to their very fine salaries and severance pays. Here are some more examples:

Hanmi Financial (NASDAQ: HAFC) President and CEO Dr. Sung Won Sohn requested and got a 2005 Mercedes Benz 430S, as well as the transfer of his membership to the Wilshire Country Club and the Jonathan Club. This was in addition to his $1,298,000 lump sum retirement pay.

Continue reading Outrageous executive severance perks - talk about chutzpah!

Outrageous executive severance perks - talk about chutzpah! originally appeared on BloggingStocks on Tue, 22 Jul 2008 13:46:00 EST. Please see our terms for use of feeds.

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Friends of Angelo loans: more names!

Zac Bissonnette — Thu, 17 Jul 2008 17:15:00 EST

Filed under: Countrywide Financial (CFC)

The Friends of Angelo Mozilo loan scandal widens, with Portfolio.com publishing a list of prominent people who received favorable loan terms from Countrywide Financial because they were friends of its chairman and CEO. Christopher Dodd has already been raked over the coals for the special deals he received, but there's more: former Fannie Mae CEOs James Johnson and Franklin Raines, former HUD director Henry Cisneros, CNN commentator Paul Begala, and many others. View the full list here, with 17 names and details on the terms.

It's tempting to level allegations of political corruption, and special terms given to executives at Fannie Mae and a judge who later heard a case involving Countrywide would seem to be obvious conflicts of interest. But as scandals go, this one seems pretty lame in that regard. The amounts involved just weren't that big: What's $15,000 when you're William Esrey, the former CEO of Sprint? It seems more likely that Angelo Mozilo, an incredibly vain man, wanted to be a "player" and hobnob with influential people. That he used shareholder assets to pursue his social agenda is distasteful but, unfortunately, not particularly rare. And given what a corporate governance outhouse Countrywide was, it certainly isn't surprising.

But in the current environment where Countrywide is being raked over the coals, mostly with good reason, this was destined to turn into a big mess. Read the Portfolio exposé here.

Friends of Angelo loans: more names! originally appeared on BloggingStocks on Thu, 17 Jul 2008 17:15:00 EST. Please see our terms for use of feeds.

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Countrywide fined $325,000 for ripping off consumers

Zac Bissonnette — Wed, 16 Jul 2008 10:35:00 EST

Filed under: Law, Scandals, Bank of America (BAC), Countrywide Financial (CFC)

The Chapter 13 bankruptcy trustee in Pittsburgh accused Countrywide Financial, the poster child for lending practices that were disastrous for both investors and consumers (but worked out quite well for Angelo Mozilo), of losing or destroying more than $500,000 in checks between December 2005 and April 2007, and then charging already downtrodden borrowers for illegitimate late fees and legal costs.

Countrywide recently settled those allegations, and will pay $325,000. That's it. Is that a deterrent? Now that Countrywide is owned by Bank of America (NYSE: BAC), it's barely a rounding error, and certainly not something that will discourage Countrywide or other lenders from ripping people off.

Crime might not pay, but apparently it doesn't cost much either. Given the continuing flow of hugely negative publicity for Countrywide, it's hard to imagine that Bank of America isn't rethinking its plan to keep the Countrywide brand. Why would someone go a company synonymous with foreclosures, bait and switch, and corporate greed when they want a home loan?

Countrywide fined $325,000 for ripping off consumers originally appeared on BloggingStocks on Wed, 16 Jul 2008 10:35:00 EST. Please see our terms for use of feeds.

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Was Countrywide Financial an even shadier company than we thought?

Zac Bissonnette — Fri, 11 Jul 2008 14:00:00 EST

Filed under: Scandals, Bank of America (BAC), Countrywide Financial (CFC)

With all the terrible press Countrywide Financial, which is now owned by Bank of America (NYSE: BAC), has gotten, it seems hard to imagine that there's more bad information to come. A former Countrywide regional vice president showed NBC internal emails where he had expressed concerns about mortgage fraud -- inflated appraisals, and employees coaching borrowers to lie about their incomes.

The vice president/whistle blower was fired -- he says it was because he refused to close bad loans, while the company says he was not performing. Interestingly, those could well be the same thing. He is now suing the company, and this will be an important lawsuit to watch for people looking to understand the mortgage crisis.

His allegations seem to fit in well with everything we know about Countrywide, and the rapid deterioration in its financial position indicates that its lending practices were, at best, sloppy.

Was Countrywide Financial an even shadier company than we thought? originally appeared on BloggingStocks on Fri, 11 Jul 2008 14:00:00 EST. Please see our terms for use of feeds.

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Cramer on BloggingStocks: When the bottom comes, you'll know it

Jim Cramer — Wed, 02 Jul 2008 09:22:00 EST

Filed under: Market matters, Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC), CIT Group (CIT), Countrywide Financial (CFC), Wachovia Corp (WB), Wells Fargo (WFC), Cramer on BloggingStocks

From TheStreet.com Network

TheStreet.com's Jim Cramer says it'll be a huge, bizarre investment that sticks -- not a bid for Wachovia.

Why is there so much chatter about Wachovia (NYSE: WB) (Cramer's Take) getting a bid? Why do people think that its deposit base is worth the heartache of dealing with its mortgage portfolio?

We have all heard the chatter about a potential bid for Wachovia, and it sure would be sweet, because the stock has been one of the worst of the group. It doesn't have a CEO, so that fits the scenario of a company that could be for sale. The franchise was always a solid one until now. And I will admit that the secret to the bulls' case for a better second half is a bid for Wachovia, a premium bid that takes everyone's breath away and causes a short panic.

My problem is that if you wanted to buy Wachovia, why not wait? What's the hurry? Is it that you might miss a chance at a bottom? Is there someone else out there who might want it? Do you perceive a bidding war, for instance, between JPMorgan (NYSE: JPM) (Cramer's Take) and Wells Fargo (NYSE: WFC) (Cramer's Take) for WB? How about USB (NYSE: USB) (Cramer's Take)?

Continue reading Cramer on BloggingStocks: When the bottom comes, you'll know it

Cramer on BloggingStocks: When the bottom comes, you'll know it originally appeared on BloggingStocks on Wed, 02 Jul 2008 09:22:00 EST. Please see our terms for use of feeds.

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Florida joins Countrywide Financial-suing bandwagon

Zac Bissonnette — Tue, 01 Jul 2008 11:59:00 EST

Filed under: Countrywide Financial (CFC), Housing, Recession

If pretty much every other attorney general in the country was suing Countrywide Financial (NYSE: CFC), would Florida's? Apparently. Last night the Associated Press reported that Florida Attorney General Bill McCollum has sued the company for misleading and unfair trade practices.

There's no question that Countrywide is a horrible company on a multitude of levels, but there's some irony to the allegations that the company took advantage of borrowers. Take a look at the chart for the company's stock price over the past 5 years -- how much worse would it have done if they'd treated people ethically? It's a little bit like finding out that career minor leaguer Manny Alexander was a steroid user.

In some ways the beat down on Countrywide seems unfair, more of a response to general market problems than anything else. Countrywide helped people use toxic mortgages to buy homes they couldn't afford at a time when lenders were operating on the assumption that home values always went up, interest rates never did, and everything was comin' up roses. It was a happy conspiracy and, sure, Countrywide was happily working on loans that were fraudulent -- but everyone knew the subprime game was the wild west and no one cared. Towns benefited from increased property taxes and federal loan programs encouraged home buying with little money down. But with a lot of people angry about losing their homes, these lawsuits are good politics in an election year.

Florida joins Countrywide Financial-suing bandwagon originally appeared on BloggingStocks on Tue, 01 Jul 2008 11:59:00 EST. Please see our terms for use of feeds.

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Smart bond plays, retiring on a shoestring & top kitchen values - Today in Money 7/1

Allan Halprin — Tue, 01 Jul 2008 08:59:00 EST

Filed under: Microsoft (MSFT), eBay (EBAY), Starbucks (SBUX), Ford Motor (F), General Motors (GM), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Money and Finance Today, Anheuser-Busch Cos (BUD), Countrywide Financial (CFC), United Parcel'B' (UPS)

In the News:

· Stocks Look Weak at Start of First Day of 3Q

· EBay Ordered to Pay Louis Vuitton, Fendi & Others Millions for Knockoff Sales

· InBev to Continue Pursuit of Anheuser-Busch

· Florida Sues Countrywide Over Mortgages

· General Motors Stock Hits 54-Year Low

· Wilbur Ross Says Run-Up in Oil Prices Is a Bubble

· UPS Pilot Rescues Debilitated Farmers

· Microsoft's Plan B for Search

· Starbucks Makeover Isn't Going Well

· Could a Ford, Chrysler Merger Be in the Making?

· Cable, Satellite Customer Satisfaction Falls, Poll Finds

· Howard Stern May Have a Sirius Dilemma As Company Looks to Cut Costs

Bonds: Smarter Plays for Darker Days
Thinking of Treasuries or other fixed-income plays as the stock market sinks? Here's what to look for.
Bonds: Smarter Plays for Darker Days - BusinessWeek

Who's Minting the Most Millionaires? Not the U.S.A.
A new survey finds when it comes to minting the wealthy, India and China now outpace the U.S. which isn't even in the top 10 anymore. Other countries also outpacing America include Brazil, Korea, Indonesia, Slovakia, Singapore, UAE, Czech Republic and Russia.
A Millionaire Boom In The East - Forbes.com

Continue reading Smart bond plays, retiring on a shoestring & top kitchen values - Today in Money 7/1

Smart bond plays, retiring on a shoestring & top kitchen values - Today in Money 7/1 originally appeared on BloggingStocks on Tue, 01 Jul 2008 08:59:00 EST. Please see our terms for use of feeds.

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Countrywide CEO Angelo Mozilo gets emotional -- the male Tammy Faye?

Zac Bissonnette — Mon, 30 Jun 2008 18:03:00 EST

Filed under: Bank of America (BAC), Countrywide Financial (CFC)

In the days leading up to its acquisition by Bank of America (NYSE: BAC), Countrywide Financial (NYSE: CFC) founder and chief value destroyer Angelo Mozilo is getting emotional. Business Week reports that the man whose tan makes George Hamilton look like Casper "choked up" at the company's annual meeting to approve the deal. In an emotional speech, Mozilo described his love of the organization he'd built and described his tears as a "drawback of being Italian."

Let's see: Mozilo sold hundreds of millions of dollar in stock at several times the current price, and will now walk away from battered shareholders with a bloated net worth resulting from horrific corporate governance, leaving Bank of America to deal with the shareholder lawsuits and attorneys general investigations into the company's practices.

Remember Tammy Faye's tearful interviews after her televangelist collapsed amid revelations of extramarital affairs and air-conditioned doghouses? It might not be quite as pathetic, but Mozilo is one of the few people who can give the late Ms. Faye a run for her money in the unsympathetic display of emotion department.

I somehow doubt that shareholders were moved by Mozilo's speech, which was delivered in a shareholder meeting free of a question and answer session, marked by an overwhelming security presence reflecting the number of people who hate Mr. Mozilo.

Countrywide CEO Angelo Mozilo gets emotional -- the male Tammy Faye? originally appeared on BloggingStocks on Mon, 30 Jun 2008 18:03:00 EST. Please see our terms for use of feeds.

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Cramer on BloggingStocks: The path ahead is down

Jim Cramer — Fri, 27 Jun 2008 09:19:00 EST

Filed under: Ford Motor (F), General Motors (GM), Market matters, Citigroup Inc. (C), Anheuser-Busch Cos (BUD), Bank of America (BAC), Merrill Lynch (MER), Countrywide Financial (CFC), Wrigley, (Wm) Jr (WWY), Wachovia Corp (WB), Washington Mutual (WM), Cramer on BloggingStocks

From TheStreet.com Network

TheStreet.com's Jim Cramer says with few exceptions, the landscape is littered with corpses.

Sell everything. Nothing's working. Revisit when the prices are adjusted for a big recession, soaring inflation and a crushed consumer. Sell at 12,000 and come back at 10,000. Even better: short it.

Are you going to argue with any of that? Do you have a case against it? What's the counter? Takeovers? We've had a couple: Anheuser-Busch (NYSE: BUD) (Cramer's Take), Wrigley (NYSE: WWY) (Cramer's Take). Good if you owned them.

Lower rates? Can the Fed help? We assume the Fed is done. The odds favor higher rates. Bank turnarounds? How, with short-rates going up? With housing prices going down?

Can oil go down? Only with a worldwide crash, and with a worldwide crash, why would we come back at 10,000?

Can the consumer get more liquid? How? Unemployment's going higher. Wages won't go up in that environment.

That's the environment. It's pretty bulletproof when it comes to its logic.

Continue reading Cramer on BloggingStocks: The path ahead is down

Cramer on BloggingStocks: The path ahead is down originally appeared on BloggingStocks on Fri, 27 Jun 2008 09:19:00 EST. Please see our terms for use of feeds.

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Countrywide's (CFC) Mozilo passed out loans like candy

Douglas McIntyre — Fri, 27 Jun 2008 09:06:00 EST

Filed under: Management, Law, Countrywide Financial (CFC)

Angelo Mozilo, CEO of Countrywide (NYSE: CFC) may be a thug and he may get in trouble with federal authorities due to the way he ran his company. But at least he was generous.

According to The Wall Street Journal, everyone from casino employees to retired pro athletes got sweet deals. The paper writes that, Mr. Mozilo regularly lined up loans for people he met, according to several current and former Countrywide executives. Said one: "Angelo would call in and say, literally, 'My maid needs a loan.'"

Mozilo even gave a loan to the buyer of hockey player Wayne Gretsky's home.

The big open question about these mortgages is whether the people could have gotten them in the normal course of business, or was Mozilo's help necessary. He also may have made certain that his pals got below market rates.

Based on most of what has come out about Mozilo's behavior, he should probably give back those tens of millions of dollars in cash he got from stock options.

And perhaps, spend a few years in the pen.

Douglas A. McIntyre is an editor at 247wallst.com.

Countrywide's (CFC) Mozilo passed out loans like candy originally appeared on BloggingStocks on Fri, 27 Jun 2008 09:06:00 EST. Please see our terms for use of feeds.

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The barbecue at Countrywide turns into a forest fire

Douglas McIntyre — Thu, 26 Jun 2008 14:06:00 EST

Filed under: Deals, Law, Bank of America (BAC), Countrywide Financial (CFC)

More states have filed charges against Countrywide (NYSE: CFC) for aggressive marketing and giving loans which were highly risky. Washington and California have joined Illinois in the actions.

Up until now, Bank of America (NYSE:BAC), which is buying Countrywide, has been sticking to its story that it will close on its purchase of the mortgages company. The media has written a million times that the big money center bank might pull out of the deal. That actually became a bit more likely with the new states' actions.

According to The Wall Street Journal, Kurt Eggert, a law professor at the School of Law at Chapman University said, "Countrywide could be required to give back its profit on all those loans and conceivably give back houses on which it has foreclosed." Since that number could be well into the billions of dollars, the potential damages are rising fast.

Countrywide could spend tens of millions of dollars on legal fees and countless hours in court over the next several years. That has become much clearer in the last few days.

BAC would be better off to let CFC go out of business and just buy its assets. Maybe the bank never intended to close the deal. Maybe that was its plan all along.

Douglas A. McIntyre is an editor at 247wallst.com.

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