Countrywide Financial Corp: Merrill Lynch & Co says bankruptcy possible
Filed under: Business, News | By: Peter Chubb
Posted on: August 15, 2007 | 1 Comment
Countrywide Financial Corp, the biggest mortgage lender in the US could very well be on the verge of bankruptcy, that is what Merrill Lynch & Co have said. Countrywide Financial Corp’s stock fell 13 percent, that is the largest drop since the 1987 stock market crash.
The company could very well face effective insolvency if Countrywide investors forced them to sell the assets at a depressed price, either that or investors could lose their confidence in Countrywide’s ability to raise cash.
There are worrying times head for this mortgage lender, as they have now lost at least half of their share value this year alone. Countrywide have now dropped another $3.17, which now makes their stock value just $21.39 per share.
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Check out http://www.eyeoncountrywide.info , an independent consumer resource examining sub-prime lending and Countrywide Financial Corporation