This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Countrywide Denies Bankruptcy Rumors

Updated from 2:03 p.m. EST

Countrywide Financial (CFC) denied rumors that it was on the verge of bankruptcy Tuesday, as the mortgage giant's stock traded below the $10 mark for nearly the entire afternoon.

In a statement released shortly before the market's close, Countrywide said it continues to have "ample liquidity and capital and will be a beneficiary of ongoing mortgage market consolidation."

The Calabasas, Calif.-based company said as of Oct. 31 it had $35.4 billion worth of "highly reliable liquidity," up from $33.6 billion in September. Countrywide Bank also has enough liquidity available "to meet its projecting operating and growth needs" and has significant contingent liquidity to meet evolving market conditions."

Countrywide shares closed down 2.7% to $10.28 Tuesday, after dipping as low as $8.21 during the trading day. The stock is down nearly 15% for the week and 50% since the Oct. 1 close.

Aside from the bankruptcy rumors, shares were hit hard by an analyst downgrade on worries about government-sponsored mortgage giants Freddie Mac (FRE) and Fannie Mae (FNM).

Fox-Pitt, Kelton analyst Howard Shapiro said the nation's largest mortgage lender's viability to remain in business is likely in jeopardy if Freddie and Fannie -- both beset by third-quarter losses -- are not able to purchase its loans. Shapiro downgraded the stock to in line from outperform, in a note titled "The Lifeline is Withdrawn."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $132.54 1.70%
FB $82.20 0.82%
GOOG $554.99 -1.80%
TSLA $234.20 7.20%
YHOO $44.47 -0.11%

Markets

DOW 18,050.68 -29.46 -0.16%
S&P 500 2,114.36 -3.33 -0.16%
NASDAQ 5,074.0630 -18.0220 -0.35%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs