Buffett to the rescue . . . again?

By
Real Estate Agent with RealtySouth
Countrywide Financial (CFC, news, msgs)may be getting a big-name backer.

Investment guru Warren Buffett could be interested in buying parts of the troubled mortgage lender, which has suffered immensely in the market's recent turmoil, The Wall Street Journal is reporting.

Countrywide, which was trading at $40.56 three months ago, has since lost 51% of its value as delinquencies and foreclosures have risen and credit has tightened. At midday, shares were up $1.88, or 9.5%, to $21.69.

Buffett, whose Berkshire Hathaway (BKA.A, news, msgs) is invested in financial firms with strong brands like Wells Fargo (WFC, news, msgs) and Bank of America (BAC, news, msgs), might like both Countrywide's price and its portfolio of "high-quality mortgages and mortgage-backed securities," the paper noted.

This wouldn't be the first time Buffett has stepped in as white knight. In 1991, Buffett helped the investment bank Salomon Bros. weather a criminal investigation by stepping in as chief executive officer, the paper wrote, and then Buffett was close to leading the bailout of the hedge fund Long-Term Capital Management in 1998.

The recent market volatility and mortgage crisis has been likened to the demise of Long-Term Capital Management, which suffered massive losses amid a flight to liquidity and was bailed out by a number of Wall Street banks.

 

Information found on msn.com

 

Chris Lee

www.chriswlee.com

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Rainmaker
374,933
Lola Audu
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate
Thanks for this information Chris.  I'm going to read the links you provided.
August 21, 2007 12:14 PM
Rainer
447,174
Jacqulyn Richey
Las Vegas Real Estate
Prominent Realty Group
It would be a wise move for him. If he could get them back on track, he would make out very well. -Charles
August 21, 2007 12:32 PM
Rainmaker
967,291
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Personal Service, always.
Waters Realty of Brevard, LLC
Buffett is very shrewd. He has the assets, reputation and guts to go where others are a little hesitant to tread. It will be interesting.
August 21, 2007 12:46 PM
Rainer
201,181
James Gordon
REALTOR, PBD SFR SRS
Sibcy Cline Realtors®
He is not coming to the rescue he is taking advantage of a buying opportunity
August 21, 2007 01:37 PM
Anonymous
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Chris Lee

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