Merrill Lynch downgraded Countrywide Financial Corp. from buy to sell, saying liquidity pressure may increase on mortgage companies and that could hurt the nation’s largest lender, reports MarketWatch. Here’s more:
The broker told clients it fears that the acceleration of margin calls and forced asset sales in the capital markets could lead to more problems for Countrywide to finance its mortgage operations. “Should a liquidity event occur, for which the likelihood is increasing, Countrywide shares would probably witness further selling pressure,” Merrill concluded
When will Merrill be downgrading resulting from their Nationpoint purchase?
I cant believe this is happening the market is doing to Countrywide what the Goverment is to afraid to do CHL is one of the biggest raesons we are in this mess and that millions of Americans are losing there homes to foreclosure greed kills I hope Congress gets off there *** and investigates the lending industry especialy the the companies that pushed the pay option arm on the American public the only thing that would be better than this is if everybody that got screwed by CHL raided the corporation and looted all the assets old school justice
YOUR BLOGGER: Jim, please keep it clean, no 4 or even 3-letter words. Thanks man.
Jim,
Assuming I am interpreting your thing above correctly, why would Congress investigate banks, lenders, etc? They did nothing wrong except exercise poor judgment and gave too much freedom to irresponsible, greedy, lazy home purchasers.
The fault is with the individual house buyers, not the lenders.
For the second time In a year I was involved in a shut down of a sub prime lender. I worked for Novastar mortgage until, 08/14/07 when they shut down 5 retail offices, I worked in the Scottsdale, Az offiice, I also worked for Ameriquest until March 07,in Phoenix. Now watching the Countrywide troubles just bounce up and down let’s me belive it is something that will happen, In other words it is not a question of weather they will fail, but when. I feel sorry for the employees that continue to work their hearts out for these companies but fore warned is fore armed.
merrill must be pretty smart- they put out a sell after
the stocks price has already dropped in half- great timing
I bet their clients are real happy
It’s not just the lenders. They’ll get what they deserve from their greed. Unfortunately people will lose jobs in the process. And no one held a gun to a borrowers head to buy a house. Complete lack of regulation. The Fed promoted easy credit. If you have a pulse you can get a loan. Ever seen any of the “FlipThat House” type shows. How did complete novices get $750,000 loans to flip a house? Greenspan even went so far as to say in 2005 that subprime lending was “fostering constructive innovation that is both responsive to market demand and beneficial to consumers”. And Bernanke followed the plan.