Bank of America analyst: welcome to Mortgage Hell

A Bank of America analyst says this is just the tip of the iceberg, and Countrywide is the Titanic:

“The demise of two Bear Stearns managed leveraged mortgage funds could be the tipping point of a broader fallout from subprime mortgage credit deterioration,” wrote Bank of America analysts led by Robert Lacoursiere in New York.

Countrywide Financial Corp. and IndyMac Bancorp Inc., two of the largest U.S. mortgage lenders, may suffer more than other finance companies because they hold mortgages themselves as well as selling them on to investors, the analysts wrote. They may not have set aside enough money to cover losses, said Bank of America, which has a “sell” recommendation on both lenders.

Meanwhile, out here in the West, a small mortgage speculation firm goes busto and lays off 100 people.

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