Countrywide Financial Corporation

Countrywide Financials' stock prices started dropping about a year or so before the actual recession.  I remember, because I was in the mortgage banking industry.  It was a shock to me when lending practices did an about face virtually overnight.  Countrywide was one of the biggest lenders who performed not only subprime loans but had a large portfolio of "A" paper loans as well.  In July of 2007 their stock prices dropped drastcially to an anual low of $8.21 per share.  The writing was on the wall, there was a stormy road ahead, but noone wanted to admit it publicly.  They were facing bankruptcy by the time the recession had been acknowledged in the fall of 2008, and Bank of America was stepping in to acquire their book of business. Countrywide is no longer in business, but the legacy of bad loans lives on.