Wednesday Hotsheet at 3... whoops, 8:38 a.m.
Don't blame us, blame google, who hosts us.
The fishwrap of record breaks the big news this morning: there are Filipinos in Eagle Rock. It also expends twenty-five Column One inches explaining nuestro pueblo's distant and hoary past from the cultural-heritage perspective. But can you get their editors to walk across Spring and sniff around in City Hall today a bit? No, they'll tell you how space is too...tight...
But the alt quotidien codwrapper this morning at least is on the right track. It noted how neo-Marxist Richard Alarcon is calling on the the nation to subvert our private-property system by turning everyone who made a bad loan four years ago into a ward of the State.
How things have changed in America! People who used to borrow money they couldn't pay back also used to be obliged to return the property or chattel they bought on credit to their debtors. This right to life, liberty and especially property was, formerly, known in the Fifth and Fourteenth Amendments as "due process of law"---an increasingly quaint notion in an increasingly quaint America. Now people who borrow more than they can pay back, and financial institutions who lend more than they can afford to, are all thought to be so essential to our economic well-being that some pols feel we need to reward them.
The article didn't quote a single legitimate banker or economist (though it did call on the usual econo-PR suspects, the tinhatty Howard Jarvis Taxpayer Association and a guy from the "San Fernando Valley Research Center" both of who do seem at least acquainted with due process).
Alarcon's "plan", as far as I can see it, is asking every single taxpayer, whether renter, homeowner, or nursing home inhabitant, to bail out homeowners who didn't qualify for a good loan but were willing to make a bad one anyway, and handing over to loan-sharky credit institutions money they don't deserve for taking on way too much risk.
Fair to you?
Doing some math here: in a press release from Animal Reg and the Mayor's office, the City is claiming that it facilitated 25,270 pet adoptions over the past fiscal year. The City has six animal care centers open to the public. Tap tap tap that's 4211 adoptions per center over the year. Crunch crunch enter that's 11-12 adoptions out of every center every day, rain or shine, Christmas or Tuesday.
Here's what I'd do if I loved animals (and I do, and so do you---so consider it): call one of the centers and ask them how many animals they yielded for adoption on your birthday. I mean, if they can tell that they enabled 25,270 last year, they've got tallies for every day of the year, right?
Then let's compare our notes. Fishwrap media doesn't have the resources to do this...(see above; too busy reporting from 1781 and subverting due process)...but we do. It pays to double check what they Mayor and Animal Reg are peddling. They do work for us, right?
You'll find the number of your nearby Animal care center here: http://www.laanimalservices.com/carecenters.htm
Congrats to 9:44 for answering yesterday's trivia question correctly!
Today's question: What was the name of the columnist that the Herald used to run on the left side of that same page---hint: his son is far better known...and shares his name...sort of...
It's sad to lose a great nightspot, but here's a nice foto here of your MayorSam blogging team, LA's finest. That's Earl, brother...
° ° ° ° °
The fishwrap of record breaks the big news this morning: there are Filipinos in Eagle Rock. It also expends twenty-five Column One inches explaining nuestro pueblo's distant and hoary past from the cultural-heritage perspective. But can you get their editors to walk across Spring and sniff around in City Hall today a bit? No, they'll tell you how space is too...tight...
° ° ° ° °
But the alt quotidien codwrapper this morning at least is on the right track. It noted how neo-Marxist Richard Alarcon is calling on the the nation to subvert our private-property system by turning everyone who made a bad loan four years ago into a ward of the State.
How things have changed in America! People who used to borrow money they couldn't pay back also used to be obliged to return the property or chattel they bought on credit to their debtors. This right to life, liberty and especially property was, formerly, known in the Fifth and Fourteenth Amendments as "due process of law"---an increasingly quaint notion in an increasingly quaint America. Now people who borrow more than they can pay back, and financial institutions who lend more than they can afford to, are all thought to be so essential to our economic well-being that some pols feel we need to reward them.
The article didn't quote a single legitimate banker or economist (though it did call on the usual econo-PR suspects, the tinhatty Howard Jarvis Taxpayer Association and a guy from the "San Fernando Valley Research Center" both of who do seem at least acquainted with due process).
Alarcon's "plan", as far as I can see it, is asking every single taxpayer, whether renter, homeowner, or nursing home inhabitant, to bail out homeowners who didn't qualify for a good loan but were willing to make a bad one anyway, and handing over to loan-sharky credit institutions money they don't deserve for taking on way too much risk.
Fair to you?
° ° ° ° °
Doing some math here: in a press release from Animal Reg and the Mayor's office, the City is claiming that it facilitated 25,270 pet adoptions over the past fiscal year. The City has six animal care centers open to the public. Tap tap tap that's 4211 adoptions per center over the year. Crunch crunch enter that's 11-12 adoptions out of every center every day, rain or shine, Christmas or Tuesday.
Here's what I'd do if I loved animals (and I do, and so do you---so consider it): call one of the centers and ask them how many animals they yielded for adoption on your birthday. I mean, if they can tell that they enabled 25,270 last year, they've got tallies for every day of the year, right?
Then let's compare our notes. Fishwrap media doesn't have the resources to do this...(see above; too busy reporting from 1781 and subverting due process)...but we do. It pays to double check what they Mayor and Animal Reg are peddling. They do work for us, right?
You'll find the number of your nearby Animal care center here: http://www.laanimalservices
° ° ° ° °
Congrats to 9:44 for answering yesterday's trivia question correctly!
PSYCH indeed! 9:44, email aguyinla@gmail.com for your prize.Oh, my stars and garters, am I so old as to be the only one that can remember Earl Wilson?
PSYCH! I remember the column, but I'm so freakin' old I can't remember his last name, so I googled it.Did I ever tell you kids the story about the time I met the real Mayor Sam Yorty? Oh, what a time we had...
Today's question: What was the name of the columnist that the Herald used to run on the left side of that same page---hint: his son is far better known...and shares his name...sort of...
° ° ° ° °
It's sad to lose a great nightspot, but here's a nice foto here of your MayorSam blogging team, LA's finest. That's Earl, brother...
Labels: a guy in la
Posted by Joseph F. Mailander @ 8/22/2007 08:38:00 AM
41 Comments:
one wonders what Joe Mailander was so preoccupied with at 3 a.m. to miss posting his regular hotsheet.
can I coin the word 'hotshiit'
no inference on JM of course. the threads have been quite reasonable.
but I do want to comment on the Saturday posts re Jim Alger.
what a load of ballony. Jim Alger's patronizing attitude will surely come back to bite.
a dogg bite probably.
everyone's open to attack in public life.
Jim Alger has to take his turn.
and considering that everyone decries 'the dogg', I find it equally fascinating that all of these haters are still here hating.
is it that you love to hate him, or hate that you love him.
compelled either way, I guess.
"Good Morning Los Angeles"
Matt Dowd
and....relative to this thread....
what's wrong with the world, when Prop R slides through on a technicality, and the only councilman to benefit so far, wants to give all the taxpayers money to struggling homeowners who are over committed in property investment.
I will bet though that every investor had his eyes on PROFIT in the hot property market.
They did warn people, a couple of years ago, that this time may come.
People long complained about the price of real estate in this town, but guess what? it's not the sellers who set the price, it was all those buyers. it takes a BUYER to set a sale. without the buyer, the vendor does not get the high price he may be asking.
if you take the plunge, accept the price, then there is simply no bail out mechanism.
you bought it. you pay for it.
Daily News
You work for us
Re "Sanctuaries in the spotlight" (Aug. 21):
I couldn't believe my eyes when I read the mayor's quote on immigration. Telling us that " ... I can tell you, when families are torn apart, our communities are torn apart" sounds so incredibly stupid coming from a man who "tore apart" his own family in exchange for the latest, cutest, new girl.
Why is the mayor so concerned about the 40 percent of the L.A. population that is foreign-born? The voting citizens voted him in. It is these taxpayers whom he owes his allegiance to. Stop giving away our money, our land and our quality of life. Demand the feds (ICE) do their job, deport the immigrants and get our millions of dollars back for housing the alien criminals in our jails. Get tough on immigration and demonstrate you work for us, mayor.
- Arno Clair
Saugus
That press release from the City yesterday about Animal Services was bull. Mayor Villaraigosa gave a piece of paper saying "good job!" to the Department. The city gave a certificate of appreciation to itself, just to get some positive press.
Then Villaraigosa gets on the podium and just says that LA has the best animal shelters in the entire US of A. That isn't even true. Then he said that they are the largest adoption agency in the US. They aren't even the largest in SoCal. LA County adopts out thousands more animals. LA City adopted out and gave to rescuers 20,000 animals, not 25,000. Ed Boks added in wild animals which were released back to nature or died.
If you add all the extra animals that are just dying on their own in the shelter from dog fights and disease, to the ones killed for lack of space, there has been no improvement in the last two years.
Predatory lending is illegal. It's against the truth in lending act, fair housing act, is fraud and grand theft. You should find out what predatory lending really is before you say that those people should just lose their houses.
They need to get those lenders to pay for their fraud. The citizens shouldn't be paying for it. Go after the lenders, mortgage brokers and finance companies. It's illegal to put someone into a loan which you know they cannot pay back. These predatory lenders forged documents, changed the terms of the loan, added extra illegal costs. They should pay.
Maillander was a veep at Union Bank, he probably knows what predatory lending is.
When the Daily News first reporting on Alarcon's plan over a week ago, the reader comments were critical, as Alarcon noted in Council, but said he would dismiss that. Agree that it's either the borrowers in over their heads or, if there were predatory and illegal lending practices like bait- and - switch, the banks should cover it. But NOT us. Especially since as Alarcon notes, his district has the highest rates of default in the city, AND the highest rates of illegals and here-by-skin-of their teeth immigrants. What they NEED is an education in common sense and finance. This is not a communist system, whatever Alarcon thinks.
Other than that, this is my final comment on this blog -- Matt Dowd having the nerve to pop up to defend his friend's using a thread to make a gratuitous attack on Jim, based solely on ZD's paranoid suspicion that Jim is posting about him anon -- when ZD is shown to be doing that -- is outrageous, and has made Mayor Sam an example of the lowest benchmark in blogging.
No, Matt, no one is going to ZD's own threads, except a handful to tell him what an idiot he is -- have you looked?
By ALL MEANS, I urge you and zuma, and your lady friends, to ALL hang out at the supes' meetings, use up your max comment time each session.
It will be very interesting to see how long Zev pretends to listen to ZD/you guys, as long as it appears to validate his views. I challenge you to do this as an experiment in government openness, spread the "educating government officials" since ZD confirms he has already finished "educating" the Council.
Animal Services only adopted out 15,380 cats/dogs in the last 12 months, not 25,000. Here are the statistics. statistics
Matt, couldn't help yourself could you?
How is it "Jim's turn". It isn't ANYONES turn to get attacked by you homeless jobless vagrants.
Oh, and at your age, remembering the Oscar Meyer commercials cant you spell b-o-l-o-g-n-a????
You idiots did try and "report the HD issue" after YOU marched up to the podium and pointed out that the BUSSED IN HD SUPPORTERS were "proof of community participation". Rumor is that Alger had to hand you the Dakota memo showing it was all a sham.
Stay commenting on things you actually know about, like drugs, alcohol and homelessness. Everything else shines a spotlight on your ignorance.
12:07 - In this day of political correctness, I suppose Dowd would be defined as "educationally challenged."
ggfsgsfd
Dowd's the same as ZD; two uneducated fools acting like they know something about civics and politics, although every time they post they reveal more ignorance than knowledge.
They have this mutual support thing where they respond to each other's posts to amplify the numbers. The best thing to do is stay away from ZD's posts and let them die of attrition, as they surely will when no one goes there.
Yes, Zev is a piece of work; I've dealt with him since he first got elected to the City ouncil in about 1975 or 76, a long time ago.
He can charm you (if he agrees with your position) but just wait until ZD and his butt boy Matt disagree with him; watch the sparks fly and the smoke and mirrors as reality sets in.
But, ZD being the starfucker that he is, he won't figure it out for a little while, certainly not until his pants have disappeared while he is wearing them.
We have a little saying around the Hall of Administration "If you haven't been screwed at least a few times by Zev, you don't really know him."
So, have fun educating Zev, Gloria (she, in particular, likes to learn how to govern), Don, Mike and Yvonne.
And, while you are at it, teach Bill Fujioka his business as well.
I am sure they are all waiting with bated breath just to hear your two minutes of wisdom.
Predatory lending is what people call loans that they took out irresponsibly and cannot repay. It's not the bank's fault - they took a chance on you. They're not in the business to lose business. Stop making excuses for people.
Fair to me? I don't think so.
We pay our bills, and don't buy stuff we can't afford. Did anyone ever hear of the grasshopper and the ant?
If the lenders have done something illegal, the DA or the City Attorney (aka The Phantom of the Pointy Building) can prosecute them. To me, that is the limit of the public's responsibility.
Otherwise it would seem to me that it is a civil matter. The borrowers can sue the lenders. Maybe some of our famous local public interest law firms would like to take up a class action, or some such.
Predatory lending is illegal. It's not about someone getting a loan and not wanting to pay it back. It's about a lender, mortgage broker, debt consolidation person who intentionally gives someone a loan they can't possibly repay. The mortgage broker does it to get the commission. He fakes documents, forges paperwork, falsifies tax returns, forges the loan application just to get the loan approved so he gets his points, commission, bonus and kickbacks. The person who got the loan is not the one who lied and forged documents. It's the loan broker.
I don't think the City should pay for this. I think the loan brokers should pay for it.
There are attorneys who sue lenders for predatory lending practices. There are already class action lawsuits. Predatory lending practices make the loans void. The person will only owe the principle, no interest, costs, fees...
If anyone needs one, search for predatory lending attorney.
With CountryWide in all the trouble with mortgages does Alarcon expect the taxpayers to bail all those people out? Kevin Roderick has a piece in Sept. issue of Los Angeles Magazine on Antonio affair with Mirthala. Seems a hell of a lot more people will be reading it not just city people.
Stop with the crap on Zuma and Jim. This blog is fine without all the juvenile baby stuff Dowd, Zuma and Alger post here. Go someplace else and stop posting.
Interesting the media is trying to make Arellano some kind of hero. Isn't playing well here in LA. Blogs even LA Slimes are slamming her apart but our Mayor wants to help her.
FLAT OUT LIAR ALERT:
"when ZD is shown to be doing that"
ZD has been known to get along best with the most no non-sense people like Zev. Maybe those other people who experienced the, "watch the sparks fly and the smoke and mirrors as reality sets in" treatment weren't saying the things ZD is saying.
Again, I don't think anything will be much different next time as last time. And it sure seemed like they were open to the input, and that will only cause me to try and continue to use the time in the most effective manner as possible.
However much shadiness is part of the political system, even the most shady at least want the people to get as much service as possible with the money left over.
And it sure seems like the BOS was asking all the questions ZD would be asking, and they certainly didn't hold back in there combative line of questioning. Not just an ass-kissing session like across the street.
So huff and puff all you want about the big, bad Zev and BOS...I've found in the past, with the people at the top, it's all about the content. We'll see how it goes. But after one meeting, ZD feels time spent at the BOS is probably the best use of public comment time in the city because they aren't a bunch of grandstanding crybabies. They're a pack of "on-guard" watchdoggs!
Matt:
This is LA man. It's "Hotchit".
I read Alarcon's actual press release which is here He isn't going to make the City bail out the people in foreclosure. He is just offering up ideas for people to think about.
If all these people are foreclose upon, that will hurt home values for everyone else. It will cause the market to dump even more than it is. That will affect everyone. They need to get the DA to go after the predatory lenders. Make them pay. Make the loans void. Stop the foreclosures.
11:35 AM
It is also illegal to lend to illegals ... but the banks do it. And many of those over-committed borrowers are illegals. They are enabled by mexican real estate agents who assist them to get into these types of loans. Getting a loan can be very complicated, especially the paperwork involved, but you don't have to be a rocket scientist or an expert to understand the basics of how an ARM operates, to know that you could face payments that are too high, or to understand that if you buy a house with little or no down, you have no equity in that property. There better not be any "bailing out" of illegals!!
Thanks for the link to Alarcon's press statement as of yesterday.
However, you're wrong that he hasn't asked the City Council to fund a direct bailout; it references his request on Aug. 1st, which was written up in the Daily News and received negative reader comments -- and today's comments are extensive and virtually all negative on using tax dollars to bail these people out.
He wants the Council/City to pony up a fund of about $5 million to make "small loans" to people facing foreclosure. Among the two people who spoke at yesterday's meeting were "a monolingual Spanish speaker" who blamed the "language barrier" for not being able to understand the loan terms, and another guy described as a college graduate who couldn't understand what he was signing, either. They are described as victims of "predatory lending."
Well, the guy who didn't bring an English translator with him or to review his paperwork, is just plain stupid. This is America, dummy; if you want to do business here, learn the language or get a translator. Even Europeans and the Chinese are learning English, everyone but the Hispanics.
The "college grad" is a low-end grad, no pride to his school. And as people have said on the D N comments, and this blog, predatory lending is occasion to go after the banks with class-action suits, it's not our responsibility to bail out the crooks or the seriously stupid.
However, Alarcon has added some good ideas, like working with organizations already set up to provide advice and sources of loans to people looking at foreclosure; and, trying to get the feds to be more responsible when it comes to L A (good luck with that!). So if he's silently read the writing on the wall and modified his demands for direct bail-outs, then that is good. (Shows why an old socialist/ cholo like him has kept returning in various reincarnations.)
One thing you are right on, is that banks are tightening credit even for people who were more credit- worthy a month ago. But maybe that shake-out/re-examination is a good thing.
What a relief that the homeless contingent hasn't harped in on every second post on this blog -- it's actually mostly logical.
5:28 PM
Your points are good and I agree, but I do not understand this "loan"/"bailout" arrangement of 5 million he proposes... If the feds were to "bail out", I believe they would pay off the loans of the borrowers and take on the debt themselves at more favorable terms to the borrower. How would $5 million be dispensed to these people? As a second mortgage to get them through? That would be moronic ... first the terms of their original loans would not change AND they would have a second to pay as well ... they are no more going to be able to pay on the second than they are on the first mortgage! Or is he just planning to "gift" them all with a lump sum of money to get them through for a while??? Equally moronic, short term and useless!
The city has no business getting into "bailouts" - they can't possibly do it on any meaningful or realistic scale that is not going to end in a total loss for all concerned!
I agree that there should be no bailouts, but some intervention may be necessary to consider to keep many things from just taking a collective nosedive, however...NO "BAILOUTS" TO ILLEGALS!!! If there is to be any assistance from any source it must be offered to CITIZENS ONLY!
I've noticed that no one has realized one very important issue here:
Step 1) Foreclosures are up.
Step 2) Home prices are starting to fall.
As step 1 and step 2 are correct, then step 3 is certain to follow:
Step 3) Homes / Housing shall start to become more affordable, if anyone has bothered to save their money and not bought during the latest price bubble. For example, a house which was listed at $480,000 four months ago will soon be listed six to twelve months from now at around $320,000.
That's a good bet.
I plan to buy one mid-2008 -- by then, I'll be able to make a 25% down payment on it, and my payments will be less expensive on a fixed-interest, 30 year loan.
We will certainly have the usual whiners protesting for more affordable housing, but they're usually the ones who don't know how to put money in a savings account.
ZD drive us bananas.
Obnoxious people can invade your life. Not everyone gets along perfectly. Most blogs have a Gossip, that one person who has the "scoop" all the time and is not afraid to share it. Misery loves company, and finds it often in the Whiner, who isn't afraid to complain and bellyache. Discontent could be a sign of a chronically depressing blog environment. Do you blog in a less-than-nurturing atmosphere? Is morale constantly low? Have you been complaining for two solid years? It could be an organizational problem that applying feng shui to this blog just won't fix.
5:58: you're probably right, that in that price range, what's "entry level" for greater L A., prices will fall -- bad for recent buyers, good for you and others trying to get in. If former hold on a few years, should be okay. Prices in higher end (near a million and more) aren't falling, per the papers and local realtor reports, although staying on market longer. But inventory lower, with people not doing as much "discretionary selling," so holding on if they don't have to sell. Lower inventory in higher end is balancing out prices so far.
To previous poster, Alarcon doesn't give the mechanisms of his loans or how people who can't pay the banks, can afford new loands. With a 5 mil fund, he can't bail out too many houses. Or would he pay the monthly mortgages for a few months. But then what? Good questions.
To last poster: Good analogy, that zuma dogg is bad verbal feng shui.
Guess that's why so many are so anxious to "clean house" here.
Tune into the 10pm broadcast on KLCS or select item 54 on the click here at 2:33:00 to here Zev say,
"BUT WE DO NEED TO HAVE A STRATEGY, AS GLORIA AND DON HAVE SAID, TO GET THIS OUT AND AS ZUMA HAS SAID...I THINK HE'S RIGHT ON THE MONEY...HE'S GOT THE RIGHT IDEA."
Glad I could be of assistance to the county! And maybe the crybaby losers can call 2-1-1 and complain about Zuma Dogg.
Zuma Dogg has convinced me. All you need for a little bit more showmanship is a cane and cape a la James Brown. Otherwise your delivery and intonation is right on brother. If you can't beat them, join them! Power to the people.
Alarcon is an idiot. He and all the idiot valley clowncil members bitch and complain that they don't have enough cops on the streets and instead of doing the logical easy thing to get more cops and that's give them overtime they rather act like babies and do nothing. But Alarcon thinks its more important to help out illegals who can't pay their mortgages. Do these moron clowncil members think anyone in the city takes them seriously?
It's sad to lose a great nightspot, but here's a nice foto here of your MayorSam blogging team, LA's finest. That's Earl, brother...
Very misleading. The picture blinded my eyes for a good half hour. Your laughs at my expense. I was expecting to see gentlemen in ties. Horror!
In L.A., $5 million bails out what, 10 people?
Alarcon is an idiot. He and all the idiot valley clowncil members bitch and complain that they don't have enough cops on the streets.
The other side of the coin is, there are lots of cops at the donut shops. If you need a cop call YUM-YUMS or Winchell's.
Zev and the other 4 supes may be leaderless and rudderless, but as the LAT editorialized on 8/15, "They may be politically craven, but not completely irrational." Eveyone knows Zev will say whatever it takes to the group he's appealing to at that moment, like his infamous offer to head the "people's revolution" against development to the N C leaders a few weeks ago -- a group whose average age is about 95, and who are as reactionary as Cheney. But anyone with common sense laughs off his endless reinventions.
However, we encourage you to keep popping up at the Supes meetings, and be sure to bring ALL your buds and lady supporters. What's the max comment time there? Just 2 mins. a day, or do you get the full 5-6 each like at Council? Let's see who's right about how long you last with Zev, you or the guy who's known him for over 30 years.
There will be no better show in reality TV than the look on his face and awareness as he and the rest of them begin to see what he's up against. Now that you're done "staking out your territories," on more or less equal terms.
8:29pm,
What are you so afraid of? Why are you trying to paint him as such a stubborn, inflexible guy. I mean one second I was combating him over a card, but he didn't let that prevent him for accepting something I had to say minutes later. I don't see what the problem is. Are you upset that ZD behaved and spoke in a manner they were able to accept, and the fact that they are secure enough in their leadership positions that they can easily recognize others? Why don't you just show up at a New Year's eve party at 12:00 midnight and try and warn everyone the world might possibly be coming to an end soon, according to your insightful crystal ball.
Maybe there's a Superbowl victory parade you can show up at; and laugh in people's face how next year YOUR team is going to stop them!
Keep fighting the good fight loser.
You think you are diminishing me when you describe the treatment you think i am going to get from BOS...and when you say council doesn't listen, or the newspapers don't pick up my smokesignal...but you are only diminishing THEM, because you think they are as shallow and insecure as you.
You think if Zev or Zine or Alarcon or G. Smith mention my name that their whole constituency is going to vote for Zuma Dogg in the next election. GROW UP CRYBABY! These are people who are secure and it is a pleasure for them to recognize when a little guy from the stands weighs in with something good to say. So why are you out there trying to spin that they are inflexible and don't listen? You think you are mocking me. But I still show up anyway. So all you are doing is making them sound bad.
Jim Alger is a pretty boy, and should be on that Micky's float.
Yes.this is good news for everyone.
NEW YORK - Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment in the company Wednesday as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.
If Bank of America were to convert its shares under Countrywide's current share count, it would hold between 16 percent to 17 percent of Countrywide shares, said Robert Stickler, a Bank of America spokesman.
That would make Bank of America the company's largest shareholder. Currently, AllianceBernstein LP owns the most Countrywide shares - about 63.7 million, or 11 percent of the company - according to documents filed with the Securities and Exchange Commission.
The deal restricts Bank of America from trading any shares converted from preferred stock for a period of 18 months and from acquiring beneficial ownership of more voting shares in the company.
Countrywide shares jumped more than 20 percent to $26.25 in after-hours trading. Before Countrywide's announcement, the shares had closed the regular session up 3 cents at $21.82.
Kenneth D. Lewis, Bank of America's chairman and CEO, said in the statement that turmoil in the stock market has led some to underestimate the value in Countrywide's operations and assets.
"This investment reflects our confidence in their business and recognizes the importance of the company in providing home financing across the country," Lewis said.
Calabasas-based Countrywide said last Thursday it had borrowed $11.5 billion from several dozen banks so it could keep making home loans.
As defaults increased on subprime mortgages to borrowers with shaky credit histories, and the problems stretched to other credit markets, Countrywide's shares plunged, hitting a 52-week low of $15 last Thursday.
The stock rebounded after the Federal Reserve cut a key interest rate Friday. Even with the rally, Countrywide shares have lost about half their value so far this year.
Shares of Bank of America, which rose 35 cents in regular trading Wednesday to $51.65, gained another 1.9 percent to $52.63 in after-hours trading.
I should pay to bail these idiots out? Screw 'em. By the same token, I don't want to pay to bail those greedy SOBs that originally made or bought the loan. Their loss. Let them lower the rates to keep them in the home or let 'em go bankrupt. They knew what they were doing. No taxpayer money. I'm tired of paying for the financially challenged. Alarcon is an idiot. Comprende?
I should pay to bail these idiots out? Screw 'em. By the same token, I don't want to pay to bail those greedy SOBs that originally made the loan. Their loss. Let them lower the rates to keep them in the home or let 'em go bankrupt. They knew what they were doing. No taxpayer money. I'm tired of paying for the financially challenged. Alarcon is an idiot. Comprende?
Don't you guys see the connection?
Zorro and Zuma; what a team.
By the way, Zuma, your starfucking of Zev is getting a bit boring. In effect, you have just met him and seen him once or twice, maybe four or five times.
We are all in the game and know him to be the bully, backtracker, double crossing pol that he is.
He'll walk on anyone's back and throw out a deal he has promised if he feels that he gets more support somewhere else. His word in not his bond.
So, keep sucking up to him, like you have to lots of others with whom you have been disappointed.
Idols have feet of clay, or didn't you learn that in your vast history of studies?
I agree with the others that you and Matt need to spend more time at the BOS, comment on every issue, explain to them why they need to do things the way you see it.
We'll be watching the fun.
Alarcon bail out-- rather than force everyone to bail out the financial and intellectually strapped people who took out triple ballooning loans, why not have them leave their newly purchased properties, and move back to where they were before they got themselves into this mess? Let them take the loss of their downpayments (most propably had no money down loans), and we can all move on..
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