Announcement of problems and bailouts

On Thursday, August 16, 2007 the company expressed concerns over liquidity because of the decline of the secondary market for securitized mortgage obligations. Countrywide also announced its intent to draw on the entire $11.5 billion credit line from a group of 40 banks including JPMorgan Chase.On Friday August 17, many depositors sought to withdraw their bank accounts.Countrywide also planned to make 90% of its loans conforming.By this point stock shares had lost about 75% of their peak value and speculation of bankruptcy broadened. At the same time the Federal Reserve Bank lowered the discount rate 0.5% in a last-minute, early morning conference call. The Fed accepted about $17.2 billion in repurchase agreements for mortgage backed securities to aid in liquiditOn Thursday, August 16, 2007 the company expressed concerns over liquidity because of the decline of the secondary market for securitized mortgage obligations. Countrywide also announced its intent to draw on the entire $11.5 billion credit line from a group of 40 banks including JPMorgan Chase. On Friday August 17, many depositors sought to withdraw their bank accounts.Countrywide also planned to make 90% of its loans conforming.By this point stock shares had lost about 75% of their peak value and speculation of bankruptcy broadened.At the same time the Federal Reserve Bank lowered the discount rate 0.5% in a last-minute, early morning conference call. The Fed accepted about $17.2 billion in repurchase agreements for mortgage backed securities to aid in liquidit