400,000 homeowners who borrowed from Countrywide could see relief
Wall Street Journal Oct 6, 08 9:12 AM CDT
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Some 400,000 borrowers with subprime and adjustable-rate mortgages from Countrywide Financial are in line to receive a share of an $8.4-billion settlement in a suit over deceptive loan practices, reports the Wall Street Journal. The deal between Bank of America, which acquired Countrywide July 1, and several state attorneys general may lower both rates and principal for some homeowners.
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ANALYSIS
Merrill bid puts bold Lewis over $150B in acquisitions
Reuters Sep 15, 08 10:29 AM CDT
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Like predecessor Hugh McColl, Bank of America CEO Kenneth Lewis loves enormous deals. His 7-year reign has seen flashy conquests adding up to more than $150 billion, but never has he bagged a bigger trophy than Merrill Lynch, Reuters reports. The deal should fulfill Lewis’ oft-frustrated ambition to make BofA, already the country’s top retail bank, its top brokerage as well.
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Trump bails out Ed McMahon
Los Angeles Times Aug 15, 08 6:52 AM CDT
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Billionaire Donald Trump is giving a helping hand to 85-year-old Ed McMahon, who was about to lose his Beverly Hills home to foreclosure. Trump is buying the 6-bedroom house, listed at $4.6 million, and leasing the property back to McMahon so he can continue to live there, the Los Angeles Times reports.
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$200K suit adds to McMahon's financial woes
Associated Press Jun 20, 08 10:45 PM CDT
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Citibank has filed suit against former Johnny Carson sidekick Ed McMahon to recover $200,000 it loaned to the struggling actor, the AP reports. McMahon, 85, who has not worked since falling 18 months ago, also faces foreclosure on his Beverly Hills home. “If you spend more money than you make,” McMahon recently told Larry King, “you know what happens.”
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OPINION
Left is extending crisis by irresponsibly aiding its pals, Armey says
Wall Street Journal Jun 18, 08 1:33 PM CDT
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Congressional Dems are selling their $300 billion bill granting new taxpayer loan guarantees as a boon to homeowners, but Dick Armey sees more cynical motives in the “bailout” legislation. The former House majority leader writes in the Journal , pegging the recent revelations of sweetheart Countrywide loans for top (Dem) “banking players” to the active legislation, charging that “it’s all too clear who is being rescued.”
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Lawmakers wary of unearthing more Countrywide ties
Politico Jun 17, 08 5:11 PM CDT
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GOP lawmakers are leery of investigating mortgage deals Countrywide may have arranged for members of Congress, even though a fellow Republican is leading the charge, Politico reports. More Democratic ties to the troubled lender would give the GOP ammo in a cycle seemingly stacked against it—but the people who must pull the trigger are apprehensive about “opening Pandora’s box,” said one aide.
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Troubled mortgage lender gave breaks
to Dodd, other VIPs
Portfolio Jun 13, 08 12:45 PM CDT
(Newser)
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Countrywide Financial made sweetheart deals for lawmakers and other high-profile pols who received mortgages from the disgraced lender, a Portfolio exposé reveals. The deals, which appear to violate both company rules and federal law, benefited "Friends of Angelo"—as in CEO Angelo Mozilo—including at least two US senators, Clinton and Bush Cabinet members, and an ex-UN ambassador.
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Earnings Report
Writedowns pack bigger punch than analysts expected
Bloomberg Apr 21, 08 8:00 AM CDT
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More than $6 billion in subprime writedowns sent Bank of America profits skidding for the third straight quarter today, as the nation's second-largest bank posted a 77% decline in net income for the first quarter. Earnings were $1.21 billion, down from $5.26 billion a year ago, reports Bloomberg. The losses exceeded analysts’ expectations by some 44% and sent market futures into a slide this morning. BofA—in the process of acquiring troubled home lender Countrywide Financial—said revenue slipped 6%.
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MARKETS
Financial sell-off follows Fed's move, sends markets plummeting
Wall Street Journal Mar 14, 08 3:40 PM CDT
(Newser)
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News of the Bear Stearns bailout triggered a sell-off today as investors were reminded that the true depth and breadth of current credit problems remains uncertain, the Wall Street Journal reports. Bear Stearns stock closed at 30, down a breathtaking 47.4% on the day. The Dow fell 194.65 to 11,951.09, the Nasdaq 51.12 to 2,212.49, and the S&P 500 27.34 to 1,288.14.
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MARKETS
Crude shatters record price; recession fears prevail
MarketWatch Mar 10, 08 3:49 PM CDT
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US stocks fell today for a third consecutive day as fears of recession continued to spread, MarketWatch reports. With Ambac’s revival uncertain and Countrywide facing a possible securities fraud probe, shares of both financial giants plummeted, pressuring the overall market downward. The Dow lost 153.54 to close at 11,740.15, the Nasdaq dropped 43.15 to 2,169.34, and the S&P 500 fell 20.00 to 1,273.37.
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Feds seek evidence that subprime lender lied about quality of loans
Wall Street Journal Mar 9, 08 5:00 AM CDT
(Newser)
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The FBI has launched a securities fraud investigation against subprime mortgage lender Countrywide Financial for allegedly lying to investors about its financial status and the quality of its mortgage loans, reports the Wall Street Journal . The probe could extend to Wall Street firms that helped package more than $100 billion in mortgage-backed securities for Countrywide over the past three year s .
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Fat cats to face executive pay hearing
Associated Press Mar 7, 08 7:53 AM CST
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A House committee wants to know why the CEOs of three companies mired in the subprime crisis collected massive bonuses as their firms bled billions, AP reports. The targets include Merrill Lynch, Citigroup, and Countrywide, all of which posted stunning losses last year. Countrywide CEO Angelo Mozilo and the former CEOS of Merrill and Citigroup, Stanley O'Neal and Charles Prince, will be on the hot seat. O'Neal and Prince were fired, but pocketed hefty payouts on the way out.
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