Countrywide Mortgage Company

Bought today (pending approval---which I'm sure they already have from the administration---by Bank Of America by issuing stock for about four billion dollars. All that means is the stockholders of BOA will be paid less per share next quarter. They didn't really PAY anything.

Then why did they "buy" Countrywide?
To save people with high mortgage rates? No!
Then why?
To keep Countrywide from bankruptcy? No--they could care less!
Then why?
They own a chunk of Countrywide, that is why!
Banks can now borrow money from the government for about half of what they could last year. Who is to pay that difference in the long run?
Does anyone reading this have a clue as to what is going on? Or care?
The Countrywide CEO is leaving of course, but with about $150,000,000 leaving bonus! For what? A contract, that is what!
What incentive do those jokers have to do well? Who promotes their actions?

Now we agree Nit

Submitted by mudcat on Fri, 01/11/2008 - 8:24pm.

B of A is buying the cash flow from people who can't refinance under the new rules and B of A will benefit big time from this purchase. They will trim people but still collect the spoils from the sub-prime actions of Countrywide.

Most Countrywide sub-prime loans have huge prepayment penalties in the and B of A knows this as well. B of A can't lose.

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