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Citigroup Injected, Countrywide Rejected

The Dow and S&P closed in positive territory, but the Nasdaq couldn’t hold on to any gains.  In spite of the 133 point gain on the Dow, the market just wasn’t  "strong" today.  There was plenty of selling on the rallies.

Citigroup (C) plans to inject $3.3B in capital to support six of seven SIV’s it took back on it’s balance sheet last year.  They are trying to maintain their credit ratings.  The SIV’s assets total around $49B.

Fitch not only downgraded Ambac (ABK), but now they’ve downgraded 46 classes of RMBS (residential mortgage-backed securities).

A judge has denied Countrywide’s (CFC) appeal of the bankruptcy court’s order allowing an investigation into how the company calculated proof of claims on consumer bankruptcies.  This has been an ongoing affair.  Legg Mason is a major shareholder in CFC and is reportedly unhappy about the Bank of America/Countrywide merger.  It remains to be seen if he will fight this.

This isn’t earth-shattering, market-moving news, but watch for more of this type of action in other companies:  Bryn Mawr Bank (BMTC) announces their plan to freeze their pension plan as of March 31,2008.  They will close the plan to future employees and discontinue future benefit accruals for current employees.  No employee will lose previously earned benefits.  However, the company announced that in addition to the existing dollar for dollar company match on the first 3% of base salary, the Bank will make an additional, fully vested discretionary contribution of 3% of employees’ base salary into their 401(k) accounts without regard to the employee deferral contributions.