Countrywide cut at Merrill on liquidity concerns

A

ASusilovic

Merrill Lynch downgraded Countrywide Financial Corp. to sell from buy, citing concerns that liquidity in the mortgage sector could further erode the value of the company's franchise. The broker told clients it fears that the acceleration of margin calls and forced asset sales in the capital markets could lead to more problems for Countrywide to finance its mortgage operations. "Should a liquidity event occur, for which the likelihood is increasing, Countrywide shares would probably witness further selling pressure," Merrill concluded.
 
Quote from Trendytrader:

Merrill trading desk has now gone short CFC ...they had to wait..
More...

Bloomberg crawler says they say bankruptcy a possibility. Did anyone see that in theMLPFS comments?
 
From BUY recommendation to bankruptcy.
I guess they have gotten themselves and their big clients out by now.
Mozillo must be out by now also.
 
Amazing.
Someone over there must have thought to read the financial section in the NY Post between sessions of Soduku, or whatever that game is called...
 
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