Countrywide Financial Shares Plummet On Investor Worries

by Darren

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Countrywide Financial is a company that has a lot of exposure to the subprime crisis, and that’s making investors lose their appetite for shares in the company. Rumors that the company was heading into bankruptcy today pushed the stock down rapidly.

The beleaguered company run by CEO Angelo Mozilo has tanked nearly 25% in Tuesday trading, challenging the notion that the nation’s largest mortgage lender is too big to fail. Shares dipped as low as $5.76 before a brief trading halt on the New York Stock Exchange Tuesday afternoon, before the company issued a statement denying the rumors, according to published reports. More recently, the stock was trading down 17.3% to $6.32, below its 52-week low.

“The rumor was they would file for Chapter 11 this week,” Michael Mainwald, head of equity trading at Lek Securities Corp., told Bloomberg during Tuesday afternoon trading.

A call to a spokesman at Countrywide was not immediately returned.

All in all, shares in Countrywide Financial are down 80% since their peak.

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