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Wednesday, January 11, 2012

''Treasury Emails Feared Countrywide Collapse''

read more from american banker...

"In the months before Bank of America Corp. acquired Countrywide Financial Corp., government officials exchanged emails discussing the beleaguered mortgage lender and rumors that it might collapse.
"The almost 40 pages of emails from Treasury Department officials, which theCharlotte Observer obtained through a public-records request, span from when B of A first invested in Countrywide in August 2007 to when the bank acquired the mortgage lender in January 2008."

"The emails also showed that the Treasury Department officials were warned that the subprime crisis that surfaced in 2007 would lead to a recession. One official received an email in November 2007 from an investment researcher that said, "The entire mortgage market is now contracting and fighting for its very existence. Credit will get even tighter still and the credit crunch, which of course is already spreading beyond housing, will get that much worse," the Charlotte Observer reported."


the story as reported by the charlotte observer...HERE

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