Comments on: What Does the Future Hold For Countrywide?

By: Heidi

Heidi — Wed, 09 Jan 2008 17:08:05 +0000

I agree with JS> Countrywide is paying such great deposit rates because they need cash. Now that investors are no longer interested in MBS (mortgage backed securities) Countrywide has a liquidity problem on top of the default/bankruptcy problem. Take advangate of their capital budgeting crisis and enjoy the higher rates (just don’t deposit more than the FDIC limit of $100k for non-qualified money and $250k for qualified).

By: JLP

JLP — Wed, 09 Jan 2008 15:57:38 +0000

GRBerry,

Thanks for the catch. I meant FOURTH quarter! I made the correction.

By: GRBerry

GRBerry — Wed, 09 Jan 2008 15:45:20 +0000

One false statement in your comments: 9 months results ending on September 30, 2007 includes Q3 2007, they are not “from BEFORE the carnage that occured during the third quarter of 2007!” That is a purely false statement you have made.

By: Ernesto

Ernesto — Wed, 09 Jan 2008 15:25:51 +0000

I was a CFS shareholder years ago when I was an admirer of their growth, service and dividends.
This changed when I was reading a quarterly earnings statement outlining how CEO Angelo Mozilo was forgoing retirement, but the board decided to give him his $9 Mill retirement package anyway and then voted him another $9M retirement package when he decided to retire again. This boosted his total comp package for 2005 to around $57 Million. Oh, and by the way we missed our quarterly earning expectation. Better luck next quarter.

This triggered what I call the DCOE factor: the Doushe Bag Chief Executive Officer. I sold the stock (for a decent profit) and haven’t looked at them since.

By: Matt

Matt — Wed, 09 Jan 2008 14:40:13 +0000

I also invested money in countrywide CDs. Since it is FDIC insured, I am not worried about getting my money back. Still, just to clarify, the guidelines that you speak of JS will still allow me to earn the monthly interest, right?

By: Dave

Dave — Wed, 09 Jan 2008 05:26:57 +0000

I saw a beatle lieing on its back on the sidewalk under a large tree back in October. It’s legs were moving and its back shell was so large, shaped like a helmet, so that this beatle had no chance of righting itself. It reminded me of a turtle, but without any kind of neck or head which could get even close to the concrete. I thought this beatle represented countrywide. It’s equity in piggy back loans is so weighty, it cannot right itself. How many other heavily laden CDO bearing critters will end up on their backs, with no means to right themselves? It will only take this winter as the leaves come off the trees for these critters to find themselves in the same fate that countrywide suffers. I left that bug alone, food for a bird.

By: Kitty

Kitty — Wed, 09 Jan 2008 03:31:45 +0000

I was planning to open an account with them but a local bank had a promotion for a similar rate. A friend of mine has accounts with them.
Now I get suspicious about any bank that offers higher-than-average rate…

Not sure about Countrywide. After I looked at the news today I thought – should I be contrarian and gamble a small amount of money on their stock, kind of “entertainment money”, but decided I wouldn’t get even $500 worth of entertainment. If someone bails them out, I might regret it. I am just not a gambling person, though.

Forgetting about Countrywide for a moment. When do you guys think might be a good time to start looking at bargains among financial stocks again?

By: JS

JS — Wed, 09 Jan 2008 01:13:55 +0000

You shouldn’t worry about your money in any FDIC institution even if it goes under or gets taken over. Your money is protected per the guidelines. Don’t fret, just sit back and enjoy the higher savings rates lately.

By: Geoff

Geoff — Wed, 09 Jan 2008 00:08:30 +0000

And I just opened a Country Wide Bank account for the 5.25%, might be time to reconsider moving too much money into it. It is FDIC insured, but that could mean months of no interst if something catastrophic occurs.