Countrywide lost $2.33 billion in second quarter

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Countrywide Financial lost $2.33 billion in the second quarter, its new owner, Bank of America, reported today. From the New York Times: ‘Countrywide Financial, which Bank of America formally acquired on July 1, reported a net loss of $2.33 billion in the second quarter. That included just under $4 billion in losses tied to mortgages, home equity and other loans. But investors fear that those losses could spiral higher, and Bank of America could face billions in costs from protracted legal battles.’

More: ‘But on Monday, Bank of America said that the deal was ahead of projections. Bank of America said it now expected Countrywide to bolster its 2008 profit after raising its projections for cost savings and making certain accounting adjustments.’

Countrywide’s recent earnings/losings history:

1Q 2007: Earned $434 million
2Q 2007: Earned $485 million
3Q 2007: Lost $1.2 billion
4Q 2007: Lost $422 million
1Q 2008: Lost $893 million
2Q 2008: Lost $2.33 billion

Posted by Peter Viles
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