A Run on the California Country Wide banks?

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evince said:
A rush to pull out cash
Worried about the stability of mortgage giant Countrywide Financial, depositors crowd branches.
By E. Scott Reckard and Annette Haddad
August 17, 2007


Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank.

Countrywide Financial Corp., the biggest home-loan company in the nation, sought Thursday to assure depositors and the financial industry that both it and its bank were fiscally stable. And federal regulators said they weren't alarmed by the volume of withdrawals from the bank.

The mortgage lender said it would further tighten its loan standards and make fewer large mortgages. Those moves could make it harder to get a home loan and further depress the housing market in California and other states.

The rush to withdraw money -- by depositors that included a former Los Angeles Kings star hockey player and an executive of a rival home-loan company -- came a day after fears arose that Countrywide Financial could file for bankruptcy protection because of a worsening credit crunch stemming from the sub-prime mortgage meltdown.

The parent firm borrowed $11.5 billion Thursday by using up an existing line of credit from 40 banks, saying the money would help the lender meet its funding needs and continue to grow. But stock investors, apparently alarmed that the company felt compelled to use the credit line, sent Countrywide's already battered stock down an additional 11%.





A Bank Run......what next?
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why did you want to pretend this meant nothing?
 
Superfreak said:
I watch the market daily Dung. While there is certainly concern over the mortgage spillover, there is hardly a panic by the experts. The panic is coming from the herd mentality investors tend to get when they listen to the journalists posing on CNBC and such spouting off on topics which most of them have little ability to comprehend.
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post 17
 
evince said:
post 17
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Quote Originally Posted by Superfreak View Post

I watch the market daily Dung. While there is certainly concern over the mortgage spillover, there is hardly a panic by the experts. The panic is coming from the herd mentality investors tend to get when they listen to the journalists posing on CNBC and such spouting off on topics which most of them have little ability to comprehend.



you claim the journalists were lying about the inherent bank problems
 
Superfreak said:
I watch the market daily Dung. While there is certainly concern over the mortgage spillover, there is hardly a panic by the experts. The panic is coming from the herd mentality investors tend to get when they listen to the journalists posing on CNBC and such spouting off on topics which most of them have little ability to comprehend.
Click to expand...


post 17
 
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