Welcome to 1929! That must be what the employees of Countrywide Bank in Los Angeles must have thought. As anyone who follows the economic news knows, Countrywide, one of the nation’s leading mortgage lenders is in deep do do! They are among the leaders in the shaky “sub prime” mortgage business and the chickens are coming home to roost.
The website and phone lines of the bank were jammed as customer rushed to pull out their cash. So many folks showed up at the bank offices that they ran out of cash and had to tell customer they would call them back when more cash reserves arrived. That is not good! Combine that with the stock market slide here and overseas and things look very bad for the economy that has allegedly “been strong” according to Bush and his minions. In reality the economy is a house of credit cards propped up by risky loans and funky financial reports. Now it’s time to really find out what’s going on, if we can.
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Never fear, Bank of America to the rescue! I read on our internal web site (the Intra-net!) that we bought $2,000,000,000.00 (wow that's a big number all written out!) in 7.25% Convertible Preferred non-voting stock in Countrywide. We can convert it to common at $18 a share, AND it includes a 'right-of-first-refusal' on any offer to sell the company. Hmm. MBNA . . . US Trust . . . La Salle . . . how about a mortgage lender next?
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