Thursday, January 17, 2008
Takeunder
Takeunder. That's what it's called when a company buys another company at a discount (as opposed to a takeover, where they pay a premium). I was not even aware such a thing existed. Of course, we are all becoming way too educated about the ways of business, specifically mortgage finance. Although Countrywide continues to deny we were close to bankruptcy, Angelo agreed to sell his company to Bank of America for a paltry $4 billion dollars. He'd rejected $30 billion offers from them in the past (last year we were valued at $24 billion).
Thus ends the fairy tale of the company built by a butcher's son from nothing to the nations #1 mortgage lender. Our company stock is now worth .1822 per share of B of A stock. I don't want to dwell on the losses we've taken personally on paper since last year, it's too depressing.
All that's left is to look forward. The future is uncertain, to say the least. The merger will be finalized in the third quarter this year, and 'integration' has been promised to not even begin until 2009. So, seemingly, if a large layoff axe is coming due to the merger, it won't fall until then. We have been told that we will qualify for severance if such cuts do happen. Still to be determined are how our stock options (mostly worthless) and pension (still respectable) are affected.
On the bright side, we have also been told that B of A intends to run us as a separate entity still under the Countrywide brand. This could change if it is proven that our brand name has been irreparably damaged. I don't know why it would be, Citigroup, Wamu, Wells, Merrill, etc. have all suffered as badly or worse than we have, and the true subprime specialty shops are just plain out of business now. Unfortunately we are the poster child for the subprime mess, so I'm not sure how that will play out.
One of the reasons B of A bought us was for our industry leading technology platform. I am hoping that means that most of the tech areas will stay intact (mine included). Scanning their job opening listings, they seem to have corporate offices all over the nation (Ga, Tx, Ca, NY, NC, Ill, etc.) so it doesn't seem like they'll be in a rush to close our buildings down. Logistically it would be difficult and prohibitively expensive to move our systems in Simi, so there is that.
Uncertainty is the word of the day. People are being told to go about business as usual, and our management has asked us not to leave. Attrition might take care of a lot of jobs that might need to get cut later, lots of people have left in the past few months. Anyway, I'm keeping my head down and trying to get my work done as usual. It won't hurt to start working on my resume and keeping an eye out though... Anyone knows of any good tech jobs out there let me know :)
I've been slacking on posting the pics, I have a bunch to download from my camera but when I get home it's baby time, so I haven't gotten around to it. I will try to post more pics this weekend if not sooner.
Song of the day:
Silversun Pickups, 'Lazy Eye'
Thus ends the fairy tale of the company built by a butcher's son from nothing to the nations #1 mortgage lender. Our company stock is now worth .1822 per share of B of A stock. I don't want to dwell on the losses we've taken personally on paper since last year, it's too depressing.
All that's left is to look forward. The future is uncertain, to say the least. The merger will be finalized in the third quarter this year, and 'integration' has been promised to not even begin until 2009. So, seemingly, if a large layoff axe is coming due to the merger, it won't fall until then. We have been told that we will qualify for severance if such cuts do happen. Still to be determined are how our stock options (mostly worthless) and pension (still respectable) are affected.
On the bright side, we have also been told that B of A intends to run us as a separate entity still under the Countrywide brand. This could change if it is proven that our brand name has been irreparably damaged. I don't know why it would be, Citigroup, Wamu, Wells, Merrill, etc. have all suffered as badly or worse than we have, and the true subprime specialty shops are just plain out of business now. Unfortunately we are the poster child for the subprime mess, so I'm not sure how that will play out.
One of the reasons B of A bought us was for our industry leading technology platform. I am hoping that means that most of the tech areas will stay intact (mine included). Scanning their job opening listings, they seem to have corporate offices all over the nation (Ga, Tx, Ca, NY, NC, Ill, etc.) so it doesn't seem like they'll be in a rush to close our buildings down. Logistically it would be difficult and prohibitively expensive to move our systems in Simi, so there is that.
Uncertainty is the word of the day. People are being told to go about business as usual, and our management has asked us not to leave. Attrition might take care of a lot of jobs that might need to get cut later, lots of people have left in the past few months. Anyway, I'm keeping my head down and trying to get my work done as usual. It won't hurt to start working on my resume and keeping an eye out though... Anyone knows of any good tech jobs out there let me know :)
I've been slacking on posting the pics, I have a bunch to download from my camera but when I get home it's baby time, so I haven't gotten around to it. I will try to post more pics this weekend if not sooner.
Song of the day:
Silversun Pickups, 'Lazy Eye'
Saturday, January 5, 2008
Another year in the books...
Well, today is my 38th birthday. Appropriate, as the theme of the blog thus far has been about birth. Honestly I haven't spent much time contemplating my age, I have been a bit busy. I expect I won't really dwell on it much either.
On the baby front, she had her 2 week checkup yesterday and got a clean bill of health, although her weight is not where the dr. wants it. We'll go back next week to reweigh her and see if she's made up ground. I think she just got behind due to the jaundice.
Monday I go back to work, it's been amazing spending time with my wife and child, but it's back to the grind. Hopefully I'll find a proper balance between family, work, and me time. More pics of the little one to come!
Song of the day:
U2, 'Beautiful day'
On the baby front, she had her 2 week checkup yesterday and got a clean bill of health, although her weight is not where the dr. wants it. We'll go back next week to reweigh her and see if she's made up ground. I think she just got behind due to the jaundice.
Monday I go back to work, it's been amazing spending time with my wife and child, but it's back to the grind. Hopefully I'll find a proper balance between family, work, and me time. More pics of the little one to come!
Song of the day:
U2, 'Beautiful day'
Tuesday, January 1, 2008
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