Not surprisingly, troubled lender Countrywide Financial Corp.
reportedly started the layoff process this weekend, according to a Wall Street
Journal story. Since the Calabasas, Calif., bank already announced it would
underwrite less loans — it was more or less forced to underwrite less
considering it drew down all of its credit — so the move to cut staff was
inevitable. The first round of layoffs are reportedly slated for its Alt-A
division Full Spectrum Lending, which employs 6,800 of the bank's 18,000
employees responsible for loan origination. The nation's largest lender, which
employs 61,000 people nationwide, has been the subject of bankruptcy
speculation following a series of smaller lenders filing for Chapter 11
protection. As BloggingStocks suggests, the layoffs will not curtail the
investor's perceptions of the company's future. In other words, let the rumor
mongering continue. —Matthew Wurtzel
See story from The Wall Street Journal (subscription may be required)
See story from BloggingStocks
See story from Dealbook
See related story from BusinessWeek
See earlier post
Tags: Countrywide, bankruptcy, subprime
Continue reading below
