« Starbucks to Start Serving the Kremlin - Opening First Russian Café | Main | Herb Kelleher: The Method Behind His Madness - 112 »

Aug18
Californians Make Run on Countrywide Bank

Customers of Countrywide Bank in California came in droves to the branch offices, phone lines and Web site to get their money out of it for fear the bank will declare bankruptcy.

The concerns stem from Countrywide Bank parent Countrywide Financial Corp., the mortgage lending company under extreme pressure from the fallout of risky loans.

Branch offices were especially crowded as customer service via the phones and web site weren't satisfactory, which evidently caused more concerns for consumers. Most people couldn't get through to the bank on the toll-free phone number, and the Web site was extremely slow they asserted.

So many customers showed up at the banks to get their money that they had to leave their names.

California%20Countrywide%20Bank%20customers%20make%20run%20on%20bank.jpg

Countrywide Financial Corp. had to borrow $11.5 billion from its credit line from 40 banks on Thursday to give it operating capital to continue making loans and grow. While it will help the company, it signaled even more problems for investors who became even more concerned because the company had to tap its credit line.

When executives from the company were asked how the run on the bank would impact its strategy, they refused to comment.

In a statement, the bank said: "It is very important to remember that Countrywide Bank is well capitalized, with FDIC-insured deposits, and is one of the largest banks in the United States, with assets over $107 billion."

The parent company recently said they would start to almost exclusively offer Fannie Mae and Freddie Mac approved loans to stop the bleeding. They added that most the riskier loans will no longer be offered.

Sponsored link: The outsourcing every manager requires - Tampa Locksmith


2 Comments/Trackbacks




» Countrywide Financial Eliminates 500 Subprime Jobs from ManagersRealm
Countrywide Financial Corp. has been under scrutiny as the largest mortgage lender in the United States, and is obviously a bellweather of the industry. Today they announced they are cutting 500 jobs in the Wholesale Lending Division and Full Spectrum... [Read More]

» Hanukkah's Eight Crazy Nights Add Little to Retailer's Holiday Success from Know More Media
Tonight at sundown, marks the beginning of Hanukkah and for merchants, perhaps another opportunity to squeeze more holiday dollars from consumers. The Christmas holiday has become more of an exercise of consumer largesse than a religious celebration a... [Read More]

submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Starbucks to Start Serving the Kremlin - Opening First Russian Café | Main | Herb Kelleher: The Method Behind His Madness - 112 »

Advertise

Related Resources

recent comments

    sponsored ads



    subscribe


    Prefer Email?
    Subscribe below-

    Enter your Email:


    Powered by FeedBlitz What's this?

    Current News

    Support This Blog

    blogroll


    My site was nominated for Best Business Blog!

    I'm a C-list Blogebrity

    business social media

    Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

    BIZZlogos - Add your logo - free link to your site
    BIZZphotos - Add photos of your products and people
    BIZZprofiles - Submit your profile and build your online visibility
    BIZZspotlight - Spotlight your business with free links
    BIZZvideos - Videos about businesses, products and business people.
    BIZZbites - "Digg" for Business - Submit your articles and posts

    Know More Media - Management / Operations

    know more media network

    View Network Map

    Network Feed List (OPML)

    Know More Media Network
    Feed


    we support unitus

    PRWeb

    Influencer



    ManagersRealm is a member of the Know More Media network of business related blogs.

    Here are some current headlines from some of our business publications:

    ProductivityGoal

    CallCenterScript

    AdHurl

    TheBizofKnowledge

    LandingTheDeal

    CustomersAreAlways

    HealthCareVox

    BrainBasedBusiness

    TheInsurancePolicy

    MarketingBlurb