Desperate Cash Shortage at Countrywide

I thought they were doing alright after the $11.5 billion loan, but I guess not. They announced a massive layoff plan over the weekend and this morning Blooomberg reports:

“Countrywide is in desperate need of cash right now to continue funding mortgages, and the credit markets are still largely closed to them,” the newspaper said, quoting a person familiar with the Calabasas, California-based company.

As a competitor I’m not trying to pile on them. If a lender that size goes down things could get nasty for the rest of us. I hope they turn things around soon.

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