Countrywide Denies Bankruptcy Rumors

Updated from 2:03 p.m. EST

Countrywide Financial(CFC Quote) 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." ...