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Quick Look At Texas Enterprise Fund Companies

The Associated Press

Two major financial firms that received Texas Enterprise Fund grants did not meet their yearly job creation targets for 2008. Here is a look at those companies, Countrywide Financial Corp. and Washington Mutual:

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COUNTRYWIDE FINANCIAL CORP.

The California-based mortgage giant Countrywide received $20 million from the Texas Enterprise Fund under an agreement reached in 2004. Countrywide since has been bought by Charlotte, N.C.-based Bank of America.

Countrywide is supposed to add a total of 7,500 new jobs in the state by the end of 2010. Last year, the company fell more than 1,600 jobs short of its yearly job target. Countrywide was to create 5,500 new jobs by the end of 2008, but created only 3,876.

Gov. Rick Perry's office said the company remains in compliance with its long-term agreement because it has "surplus credits" to offset the annual shortage. Credits are accumulated when the company exceeds its job target in previous years. Countrywide may have to pay back $854 per job if it doesn't create enough during its contract.

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WASHINGTON MUTUAL

Washington Mutual, a Seattle-based bank, became the largest bank to fail in U.S. history when it was seized by federal regulators in September and taken over by New York-based JPMorgan Chase & Co.

Washington Mutual struck a deal with the Texas Enterprise Fund in 2005 to receive $15 million in taxpayer money in exchange for creating 4,200 new jobs by 2011.

Last year, it was 192 jobs short of its yearly goal. It had created 2,208 jobs by the end of the year; its target was 2,400 jobs. Like Countrywide, Washington Mutual can continue meeting its contract terms by applying credits from previous years of adding more jobs than required. WaMu may be forced to pay the state back $850 per job if it doesn't create enough.