credit crisis easing
[for now of course - but the Big One’s arrival has at least been
postponed]
Wall St seen higher on Countrywide-led confidence Thu Aug 23, 2007 9:04AM EDT
By Kristina Cooke
NEW YORK, Aug 23 (Reuters) - U.S. stocks were heading for a higher
open on Thursday on news that Bank of America (BAC.N: Quote, Profile,
Research) was pumping $2 billion into troubled U.S. mortgage lender
Countrywide (CFC.N: Quote, Profile, Research), which lifted
investors’ confidence.
Bank of America’s investment to help Countrywide Financial Corp shore
up its finances boosted shares of financial companies and mortgage
lenders, which have borne the brunt of recent credit market turmoil.
Countrywide’s shares soared 14 percent before the opening bell.
Investors were moving funds into riskier assets like equities out of
ultra-safe government paper on growing confidence the credit troubles
sparked by a crisis in the U.S. subprime mortgage market may be
easing. For more see [US/].
“There is a continuing recovery in many of the financial stocks, as
apparently the worst of the crisis in credit has passed,” said Peter
Jankovskis, chief investment officer at OakBrook Investments LLC in
Lisle, Illinois.
“That Bank of America was prepared to step in and provide capital to
Countrywide shows there is faith in the financial community that it
will recover and indicates that the Fed’s plan is working.”
[…]