In an interview on CNBC this morning, Countrywide CEO Angelo Mozilo spoke about the recent Countrywide bankruptcy rumors, the Bank of America deal, and the future of the economy.
He accused Merrill Lynch analyst Kenneth Bruce, the one who downgraded Countrywide stock and made a vague bankruptcy comment of exhibiting “irresponsible behavior” and said those claims were “irresponsible and baseless.”
Mozilo said bankruptcy chances hadn’t changed over the last six months, and called the company “solid.”
In regard to the Bank of America investment, Mozilo was quick to dispel merger rumors, saying it wasn’t even a thought, at least in his mind.
It’s interesting that he said in his mind, as many other top brass executives may have other ideas for the lending giant.
Asked if the US economy was headed towards a recession, Mozilo said the current state of affairs is one of the worst he has seen in 55 years and probably won’t get any better anytime soon.
Additionally, he said that the subprime market would be damaged for the foreseeable future, although his idea of subprime lending may be gone forever.
Shares of the mortgage lender opened strong this morning, up roughly $2.50, but have since pared gains to roughly fifty cents, due in part to the comments by Mozilo.