Countrywide stock plummets

[marmar]

from the AP, via Yahoo!



Countrywide stock plummets
By ALEX VEIGA, AP Business Writer
Tue Jan 8, 4:42 PM ET



LOS ANGELES - Shares of Countrywide Financial Corp., the nation's largest mortgage lender, plunged Tuesday after the company denied rumors that it was planning to file for bankruptcy protection.

The stock fell $2.17, or 28.4 percent, to $5.47 on Tuesday after sinking to a 52-week low of $5.05.

In a prepared statement earlier in the day, the company said there was "no substance to the rumor that Countrywide is planning to file for bankruptcy, and we are not aware of any basis for the rumor that any of the major rating agencies are contemplating negative action relative to the company."

In morning trading, Countrywide stock dipped as low as $5.76 before the New York Stock Exchange temporarily halted trading in advance of the company's statement. The decline sent stocks overall lower.

When trading resumed, the shares rebounded somewhat before tumbling again.

The stock was shaken by a report in The New York Times that said court records show the lender fabricated documents related to a bankruptcy case of a borrower in Pennsylvania.

Other Countrywide actions in borrowers' bankruptcy cases have come under scrutiny in the past. ........(more)

The complete piece is at: http://news.yahoo.com/s/ap/20080108/ap_on_bi_ge/countrywide_financial

[greenbriar]

1. what does this mean for those who have mortgages through

country wide?