Countrywide (CFC) has filed with the SEC that if its credit ratings are cut any further, its ability to raise money could be damaged. With the possibility of more write-downs of mortgage-based securities, it would seem likely that the big bank is in more trouble than some on Wall St. have imagined.
The Wall Street Journal writes that Countrywide said it believes it has "adequate funding liquidity," but that "the effect of future developments on the company may require us to … procure additional sources of financing."
This all reads like a lot of dancing around. Countrywide will face downgrades to its debt as similar pools of money are written down or sold off.
The firm is sending the minimum signal required by the SEC.
When the minimum signal reads that bad, it is time to get out.
Douglas A. McIntyre
“The Next NVIDIA” Could Change Your Life
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.