Bloomberg - "Countrywide Financial Corp. fell $1.01, or 10 percent, to $8.64 after Senator Charles Schumer urged the regulator of the Federal Home Loan Bank system to examine the risks posed by cash advances to the largest U.S. mortgage lender. The system's Atlanta bank had made $51.1 billion in advances to Countrywide as of Sept. 30, representing 37 percent of the bank's total outstanding advances, Schumer wrote to Federal Housing Finance Board Chairman Ronald Rosenfeld, citing U.S. Securities and Exchange Commission filings. Financial shares in the S&P 500 dropped 4.1 percent as a group and contributed the most to the overall index's decline." This should have been done with a meeting or phone call with the regulator - not a showboat letter leaked to the press. We can't afford further erosion in confidence in critical banks.
Schumer is a showboat very unliked by all. I"ve heard reporters say he'd issue a press release if he'd farted. That, and the fact he's been taking hedge fund cash by the boatload, and I"m sorry, they had more to do w/this than I did. This guy is a disaster. He probably had index puts.
No doubt that Schumer's hedge fund contributors had huge shorts sitting on CFC. One hand washes the other.