Did Countrywide Get a Hand from the Fed?

The central bank's discount-rate cut probably wasn't aimed directly at the lender, but the move may have helped save it from bankruptcy

The question was all over Wall Street last week: Was the credit crunch threatening the survival of Countrywide Financial (CFC) (see BusinessWeek.com, 8/15/07, "Mortgage Lenders: Close to the Edge?")? A bankruptcy filing by the largest U.S. mortgage lender would have jolted the economy, squeezing Countrywide's many creditors and tormenting the already wounded mortgage and housing markets.

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