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View Full Version : Countrywide Financial gets $50 Billion Bailout




Channing
11-27-2007, 09:23 AM
Countrywide Financial gets quasi-secret $50 billion bailout:

"The letter by Senator Schumer questioning the $51.1 billion that Countrywide borrowed from the Federal Home Loan Bank system (specifically the Federal Home Loan Bank of Atlanta) has finally revealed the little dirty secret - that was known only to a few insiders and was noticed on this blog a month ago – that Countrywide, the largest US mortgage lender, has received a massive stealth public bailout that has put at severe risk taxpayers’ money. Here is Countrywide - the premier poster child financial institution of the reckless and predatory lending practices of the last few years – getting in severe financial trouble because of its rotten lending practice in subprime, near-prime and prime mortgages – and whose CEO Mozilo is under SEC investigation for potentially illegal activities – now receiving a massive $51.1 billion of public bailout money with little official supervision of such lending. Mozilo is under investigation for his accelerated sales of Countrywide stock under a 10b5-1 plan. Mozilo has made more than $100 million on stock sales this year, while Countrywide shares collapsed more than 50%.

As the Schumer letter correctly points out the collateral against this $51 billion loan is mostly toxic waste subprime garbage whose market value is now much lower than the face value of such mortgages; so $51 billion dollar of taxpayers’ money has been put at risk with garbage as collateral for it. ..."

http://www.rgemonitor.com/blog/roubini

http://www.reuters.com/article/economicNews/idUSN2643155620071126

Johnnybags
11-27-2007, 09:34 AM
needs billions from Middle east and still will not tell what is on the books. Schumer is handing out cash like crazy to all his buddies regardless of the pending soaring inflation it will cause. Biggest bailout in history, as always with a Bush admibistration. Daddy Bush did the same thing.

user
11-27-2007, 09:44 AM
And the backers of these bailouts will try to distract everyone by pointing to the home "owners".

integrity
11-27-2007, 09:51 AM
If the dollar becomes worthless than the 130,000 I owe on my house will be nothing, right?

drain
11-27-2007, 10:30 AM
man the comments on that thread are eye opening. thanks for the post.

adrian