cacoPremium
join:2005-03-10
Whittier, AK | reply to Dark Shoes
Re: Stock Market Crashing...down 330 points right now CountryWide survives IMO and some people are going to make a ton of money on it when the dust settles down.
Countrywide borrows $11.5B from 40 banks
»news.yahoo.com/s/ap/20070816/ap_···a2oE1vAI
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| Yes, Countrywide was able to get a $11.5B line of credit from several banks. What's not in that article, though, is that they've already exhausted 100% of it. If they don't turn things around then it's just a matter of time in terms of how long the money will last?
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You have to wear the foil shiny side out or it doesn't work. - Hanrahan |
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said by caco:CountryWide survives IMO I doubt it. For all intents and purposes they stopped doing jumbo loans, and have said that 90% of the loans will be sold to fannie and freddie.
They've maxed out their credit lines for operations, I don't think they'll be able to generate enough cashflow to stay in business doing... |
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 justinAustralian
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| said by aztecnology:said by caco:CountryWide survives IMO I doubt it. For all intents and purposes they stopped doing jumbo loans, and have said that 90% of the loans will be sold to fannie and freddie. They've maxed out their credit lines for operations, I don't think they'll be able to generate enough cashflow to stay in business doing... Thats the thing, they have basically said they are no longer doing anything that Fannie Mae won't accept - because they don't want to eat their own product either. So they are now no different than any other mortgage shop still standing that will happily dole out conforming loans to those with good credit and a big deposit.
Without all their other products, the stuff the government backed fannie mae cannot take, they don't have a profit generating machine anymore. But they still have overhead, and still have a lot of toxic waste on their hands.
Not very good. |
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