Yesterday was a big deadline for Qs and lots of big companies, including several banks, jostled to see who could file closest to the deadline. Among those on my radar are Wachovia (15:49), Washington Mutual (16:52), and Och-Ziff (16:54). But it was the 10Q that Countrywide filed at 5:10 yesterday that really caught my eye. After all, now that Countrywide is owned by Bank of America (BAC), there won’t be any more Qs going forward. (Cue the melodramatic music…)
So what was in that last Q? A quick skim of the filing shows a few interesting pearls:
- More lawsuits than I could reasonably count. Just about everyone is suing them — employees, shareholders, mortgage-backed security investors. While some of the suits seem to have been stayed, you have to imagine that the legal bills are really racking up. For full details, start digging into footnote #26 in the Q.
- Various state and federal regulatory investigations. It was already known that AGs in California, Connecticut, Florida and Illinois have filed suits and that the SEC is also investigating. The filing also notes that while various media reports have reported an FBI investigation, the company says that after contacting the DOJ, “The DOJ has stated to the Company that the DOJ cannot confirm or deny whether the FBI is conducting an investigation of the Company.”
- The carrying value of the company’s loans held for investment at the time of the merger were $94.2 billion, which Bank of America paid $8.1 billion for.
- Between June 2007 and June 2008, Countrywide’s headcount fell by around 8,000 to just over 50,000. But that’s still a large number of employees for Bank of America to absorb easily.
Also interesting, but not in the Q is that the number of homes that Countrywide is trying to sell continues to rise, according to this site. In Florida, an area I’ve tracked closely, it’s up to 1,839, while the asking price continues to fall.
One other interesting tidbit: Angelo Mozilo’s name was nowhere to be found in Countrywide’s last Q. Talk about the end of an era!