This is so sad... Countrywide is the second largest lender and even they're asking for help from others... so sad!!  That'll teach 'em to give loans to people who can't actually afford the payments.

In my opinion Countrywide has been hit too hard to make a full recovery.  They have depleted their good reputation. It will be some time before we see good things coming out of their doors.  If we ever do!

In my opinion Countrywide has been hit too hard to make a full recovery.  They have depleted their good reputation. It will be some time before we see good things coming out of their doors.  If we ever do!

This is not good news.  I'm surprised.  I heard a while back that Countrywide's CEO had made a lot of enemies in the industry.  Apparently there are some who won't be sad if the company fails. 

Thanks for the post, another story to watch!

The problem with Countrywide is that they are not a large depository institution like many other mortgage banks.  They do have a depository bank, but not in the scale of many others.  They are just a mortgage banker that needs to sell it's loans on the secondary market, just like a small mortgage banker that does 50 million a month.

thanks for the update--doesn't sound good for the big boys--mike

Countrywide's problem is that they cannot afford to portfolio the non GSE saleable loans they have.  A Wachovia or Case can hold onto loans through a rough stretch.

I think that some hedging is taking place as well:  Companies investing cash are getting "preferred stock" which is prioritized in the event of a bankruptcy.

Michael,

Looks like Countrywide is far from being out of the deep one. The Feds are likely urging the other banking industry heavyweights to move in to help, before they have to do it themselves. It would look better if the industry solved its own problems, which is true. That would be the best solution. 

Esko- sounds about right.  I think the major banks know it would not be good for the mortgage or banking industry as a whole if Countrywide fails as well.