Time will tell. I highly doubt this will happen. Read the company's SEC filings. The company is liable for getting those statements wrong. Plus, the company funds 40 billion a month. How will one 11.5 billion loan help with that? If the company was on its last legs it would've gone down already.
Well, the CEO has been dumping his stock shares for a year. Read this....
http://finance.yahoo.com/q/it?s=CFCHe certainly doesn't believe they will survive this. Maybe he just wants to prop them up long enough to sell every share he owns.
If Countrywide thinks they can compete with portfolio lenders like B of A and Wells Fargo, they're nuts. They will get their [censored] kicked up and down the street on conforming loans. They depended on the sweet profit margins of jumbo loans. No jumbo, no Countrywide.
I'll tell you who is going to be the BIG winner when this shakes out. Bank of America is going to become a HUGE player in US mortgages during the recovery. As a matter of fact, I think their stock is going to go through the roof. They didn't get exposed to sub prime and wrote VERY tight mortgages. They won't suffer much foreclosures and I think that investors will be FLOCKING to them to buy anything B of A wants to sell.
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