http://www.bankruptcylawnetwork.com/2008/01/09/will-countrywide-be-able-to-defend-itself-against-serious-claims-that-it-attempted-a-fraud-in-the-bankruptcy-court/ Real Lawyers, Real Solutions Tue, 10 Nov 2009 16:34:06 -0700 http://wordpress.org/?v=2.8.6 hourly 1 http://www.bankruptcylawnetwork.com/2008/01/09/will-countrywide-be-able-to-defend-itself-against-serious-claims-that-it-attempted-a-fraud-in-the-bankruptcy-court/comment-page-1/#comment-29457 Subprime Turmoil Strikes Countrywide : Mortgage Law Network Thu, 10 Jan 2008 05:12:57 +0000 http://www.bankruptcylawnetwork.com/2008/01/09/will-countrywide-be-able-to-defend-itself-against-serious-claims-that-it-attempted-a-fraud-in-the-bankruptcy-court/#comment-29457 [...] News of a “re-created” letter hit the the national media outlets on November 8th.  Related rumors of bankruptcy have been picking up steam. Countrywide has also been beset by accusations that it is mishandling mortgage payments made by consumer debtors who are under Chapter 13 bankruptcy protection. In response, Countrywide’s stock price took a dive on November 8th, losing more value in one day than it has since the infamous “Black Monday” in October 1987.  Countrywide shares were down 28%, or $2.17 to $5.47 per share, a level which the shares have not seen since July of 1996. What is shocking about Countrywide’s fall is that it has occurred so suddenly. As recently as February 2, 2007, Countrywide’s stock price had hit an all time high of $45.03 per share with a market cap of $26 Billion USD. This means that $23 Billion USD of shareholder value has evaporated within 11 months with Countrywide losing 88% of its market value. This is absolutely stunning, considering the fact that the sub-prime collapse had already begun to percolate by February of last year. [...] [...] News of a “re-created” letter hit the the national media outlets on November 8th.  Related rumors of bankruptcy have been picking up steam. Countrywide has also been beset by accusations that it is mishandling mortgage payments made by consumer debtors who are under Chapter 13 bankruptcy protection. In response, Countrywide’s stock price took a dive on November 8th, losing more value in one day than it has since the infamous “Black Monday” in October 1987.  Countrywide shares were down 28%, or $2.17 to $5.47 per share, a level which the shares have not seen since July of 1996. What is shocking about Countrywide’s fall is that it has occurred so suddenly. As recently as February 2, 2007, Countrywide’s stock price had hit an all time high of $45.03 per share with a market cap of $26 Billion USD. This means that $23 Billion USD of shareholder value has evaporated within 11 months with Countrywide losing 88% of its market value. This is absolutely stunning, considering the fact that the sub-prime collapse had already begun to percolate by February of last year. [...]

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