Friday, August 17, 2007

Bank Run on CFC

by Bill McBride on 8/17/2007 11:07:00 AM

Perhaps the Fed was trying to provide liquidity to CFC.

From the LA Times: Worried about the stability of mortgage giant Countrywide Financial, depositors crowd branches.

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.
...
At Countrywide Bank offices, in a scene rare since the U.S. savings-and-loan crisis ended in the early '90s, so many people showed up to take out some or all of their money that in some cases they had to leave their names.