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Countrywide Says It Has Ample Liquidity, Capital

Reuters
Tuesday, 20 Nov 2007 | 4:22 PM ET

Countrywide Financial, the largest U.S. mortgage lender, said its management believes the company has ample liquidity and capital.

In a statement, Countrywide said it had $35.4 billion in ''highly reliable liquidity'' available at Oct. 31, 2007, up from $33.6 billion available at September 2007.

Further, Countrywide said it "will be a beneficiary of ongoing mortgage market consolidation.''

Countrywide shares had plummeted as much as 22 percent Tuesday on speculation the mortgage lender was running short of cash. But the stock recovered to finish 2.74 percent lower at $10.28.

Countrywide last month posted a $1.2 billion third-quarter loss but said it expected to be profitable in the fourth quarter and in 2008. The company has said it is cutting up to 12,000 jobs as it focuses on safer loans less likely to default.

The Calabasas, Calif.-based company has also shifted much of its lending to its banking unit, which it said is less reliant on capital markets for funding to conduct ordinary operations.