Is Goldman Sachs (NYSE:GS) owed money by Countrywide Financial (NYSE:CFC)

Take a look at the charts of GS and CFC and one could conclude that there is something going on here with these two companies. At around 2.00 pm today CNBC flashed a report that CFC was in trouble. At the same time GS started dropping from $173.00 to a low of $164.65 in a matter of 90 minutes. What caused the drop in GS after the announcement concerning CFC?

Does the market think that GS won't get paid back by CFC? It's being reported that the put option activity is in the hundred of thousands of contract in CFC down to a strike price of $5.00, i.e., bankruptcy prices.

Something is going on here with CFC.

Commercial Paper market pricing CFC's short term financing at 12%.

What are CFC's backup options to the CP market? Does GS provide CFC with a backup line of credit in the event that CFC cannot access the CP market?

Conclusions:

The market must be concluding that GS is either owed money by CFC or that GS is obligated to fund CFC's short term financing now that the CP window is closed to CFC.


CFC chart, http://finance.yahoo.com/q?d=v1&s=cfc


GS chart, http://finance.yahoo.com/q?d=v1&s=gs