CountryWide

Part of a series The Great American Write-Down

CountryWide (CFC) In October CountryWide posted a $1.2 billion dollar loss, their first loss in 25 years. At the same time the company also put out a statement saying that the worst was behind them and predicted profits for the fourth quarter and 2008. The market bought into it and their stock jumped 32 percent.

From the beginning of the housing downturn Chairman and CEO Mozilo has viewed it as an economic correction; an opportunity to snatch up people and accounts from the hundreds of weaker mortgage firms closing up shop. They have been able to obtain much needed cash from Bank of America and George Soros.

It shouldn’t take to much time to find out if Mozilo is truly a wizard or charlatan. I’m voting for the later.

Articles:
Countrywide Shifting Gears But Still Aggressive
UPDATE 1-Countrywide shares plunge, default swaps surge
Schubert & Reed LLP Issues Notice of Pendency of Class Action Against Countrywide Capital V and Others
Countrywide shareholders sue CEO Mozilo, board
UPDATE 8-Countrywide posts $1.2 bln loss, stock soars on outlook