Equity Conversion Plan

Countrywide shareholders are sure to approve the Bank of America takeover at a special meeting on June 25th.  The real question is whether Bank of America’s due diligence and Countrywide’s deteriorating loan portfoliio will be enough to scare away the would-be suitor.

From Market Watch on Countrywide’s special meeting:

Countrywide Financial said late Wednesday that it will hold a special meeting on June 25 for shareholders to vote on the planned acquisition of the mortgage lender by Bank of America . Stockholders at the close of business on April 28 are allowed to vote. For the deal to proceed, investors with a majority of Countrywide shares have to vote for it, the company added.

Share This

Ambac, one of the top bond insurers in the country continued to hemorrhage cash on bad mortgage-related bets. Ambac reported a loss of $228 million in CDOs and its investment portfolio in April. Many of the CDOs include subprime mortgage debt.

From the Associated Press on Ambac’s subprime mortgage backed CDO losses for April:

Bond insurer Ambac Financial Group Inc. said Wednesday it continued to take millions of dollars in charges in April tied to its credit derivative and investment portfolios.

Net write-downs on its credit derivatives holdings totaled $176 million in April, with the bond insurer taking a write-down of $228 million on the value of collateralized debt obligations. Those write-downs were partially offset by $52 million in gains among other credit derivative holdings.

Share This