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Waterbuffalo
05-03-2008, 08:30 PM
You can find the article here:
http://seattletimes.nwsource.com/html/businesstechnology/2004381915_countrywide30.html

Countrywide Financial loses $893M in quarter
The Associated Press

LOS ANGELES — Countrywide Financial said Tuesday it lost $893 million in the first quarter, as rising loan defaults amid a deepening housing downturn forced the nation's largest mortgage lender and servicer to sharply increase its provision for loan losses and book other credit-related charges.

The latest results marked the third consecutive quarterly loss for Countrywide, which reaped a windfall during the housing boom but has been struggling since last summer.

Countrywide, which agreed in January to sell itself to Bank of America for about $4 billion in stock, did not conduct an earnings conference call with analysts, citing the proposed sale.

Countrywide shares rose 2 cents, less than a percent, to $5.85 Tuesday after falling as low as $5.63 earlier in the session. Its shares are down sharply from their 52-week high of $42.24.

Chief
05-03-2008, 08:37 PM
Just shy of a billion worth of losses in the first quarter alone...BofA must know something we don't...

Waterbuffalo
05-04-2008, 10:11 AM
Only thing I can think of is they're looking toward the future business prospects. And this price tag is cheaper to take on than trying to churn new loans into their business portfolio or checking/savings accounts through their consumer division.