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| Version 0 | Version 1 |
|---|---|
| Mortgage giant denies bankruptcy | Mortgage giant denies bankruptcy |
| (10 minutes later) | |
| US mortgage giant Countrywide Financial has denied speculation it is set to file for bankruptcy protection. | US mortgage giant Countrywide Financial has denied speculation it is set to file for bankruptcy protection. |
| Countrywide made the statement after shares in America's largest mortgage lender fell as much as 25% in Tuesday trading on Wall Street. | Countrywide made the statement after shares in America's largest mortgage lender fell as much as 25% in Tuesday trading on Wall Street. |
| The shares recovered some ground after the firm's comments, but still ended the day down 21% at $7.84. | The shares recovered some ground after the firm's comments, but still ended the day down 21% at $7.84. |
| Countrywide reported a $1.2bn (£584m) loss in October, hit by the sharp downturn in the US housing market. | Countrywide reported a $1.2bn (£584m) loss in October, hit by the sharp downturn in the US housing market. |
| 'No substance' | 'No substance' |
| In its statement, the company said there was "no substance to the rumour that Countrywide is planning to file for bankruptcy". | In its statement, the company said there was "no substance to the rumour that Countrywide is planning to file for bankruptcy". |
| Countrywide is severely challenged and might falter if it does not receive an infusion of at least $4bn within the next couple of weeks Credit rating agency Egan-Jones Ratings | |
| It added: "And we are not aware of any basis for the rumour that any of the major rating agencies are contemplating negative action relative to the company." | It added: "And we are not aware of any basis for the rumour that any of the major rating agencies are contemplating negative action relative to the company." |
| Yet while Countrywide says its finances are in good sharp, some analysts are not so sure. | |
| Credit rating agency Egan-Jones Ratings told the Reuters news agency that Countrywide "is severely challenged and might falter if it does not receive an infusion of at least $4bn within the next couple of weeks". | |
| The US housing market has contracted sharply over the past year in the face of higher mortgage rates, which have led to record mortgage default levels, particularly in the sub-prime sector. | The US housing market has contracted sharply over the past year in the face of higher mortgage rates, which have led to record mortgage default levels, particularly in the sub-prime sector. |
| The result has been falling house prices, and increasing numbers of Americans either unwilling or unable to join the housing market. | The result has been falling house prices, and increasing numbers of Americans either unwilling or unable to join the housing market. |