Merrill raises specter of Countrywide bankruptcy

Want to know how bad it’s getting out there. This bad: Shares of Countrywide Financial fell yet again today—the fifth straight down day for the mortgage lender—following a report in which Merrill Lynch analyst Kenneth Bruce raised the prospect that Countrywide could be forced to file Chapter 11 bank “Effective insolvency” would result should creditors force Countrywide to sell assets at depressed prices or investors lose confidence in its ability to raise cash, Kenneth Bruce, a Merrill analyst in San Francisco, said in a research note today.

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