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NEW YORK - Countrywide Financial Corp ran advertisements today seeking to reassure customers it's safe to do business with the company, while a published report said the largest US mortgage lender has begun layoffs to help cope with a credit crunch.
The company ran full-page ads in Monday editions of The New York Times and other newspapers assuring that problems in the mortgage market don't affect the safety of federally insured deposits at its Countrywide Bank unit.
It also said the bank is "well capitalised" and that "the future is bright."
Fear about Countrywide's stability grew after the Calabasas, California-based company unexpectedly tapped an entire US$11.5 billion credit line to help fund operations.
Customers flocked to Countrywide branches last Thursday and Friday, worried that their money was not safe even with Federal Deposit Insurance Corp backing.
- REUTERS
