Fri, 09/14/2007 - 2:58pm
California based lender Countrywide Financial has challenging times ahead amid the skyrocketing default rate in subprime mortgages. The lender announced late last week it would eliminate up to 12,000 jobs nationwide or 20% of its work force in order to cut costs and deal with the mortgage industry turmoil. Last month the nationwide lender borrowed over 11.5 billion to sustain its lending operations.Â In addition to tapping its line of credit Countrywide received a infusion of 2 billion inÂ cashÂ as equity investment from Bank of America andÂ they continue to seek equity investment partners from competing financial institutions to releive to strain of current cashÂ reserve issues in this unforgiving lending environment. This uncertain territory has shocked Countrywides overall market capitalization with the stock hitting a 52 week lowsÂ several weeks ago.