Countrywide takes big charge

The nation's biggest mortgage lender is looking at pretax restructuring charge of $125 million to $150 million to cut operations and staff. A regulatory filing lays out a few specifics - about $57 million of the charge will occur in the third quarter ended Sept. 30, with the balance in the fourth quarter. About $30 million to $35 million is for termination benefits at Calabasas-based Countrywide (the company said it may cut 12,000 jobs). None of this, of course, covers the really big stuff - namely, writedowns for all those bad loans. Goldman, Sachs & Co. analyst James Fotheringham is looking at $1 billion over the next two quarters ($500 million in mortgages and $350 million in bonds backed by mortgages). Countrywide's earnings come out in a couple of weeks. (Bloomberg)


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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