Countrywide (CFC) Financial has hired Goldman Sachs and law firm Wachtell Lipton Rosen & Katz to arrange another multi-billion investment in the company, just weeks after Bank of America (BAC) made a $2 billion investment in preferred shares in the mortgage company, according to The New York Post.
The deal could involve several hedge funds and one or more money center banks.
Countrywide’s shares continue to fall. They are now off 52% over the last three months. Alliance Capital Management disclosed that it has sold about 31 million shares of Countrywide in the last month. Barclays Global Investors has also sold nearly 25 million shares.
One by-product of a new round of financing would probably be the departure of CEO Angelo Mozilo. It was on his watch that the company became especially aggressive in offering loans to home buyer who appear to have been bad credit risks. This may have helped CFC earnings for several quarters, but the piper is being paid now. Mr. Mozilo has been a big seller of his own stock.
Douglas A. McIntyre
The Average American Is Losing Momentum on Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%* today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying nearly 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.