According to a report in the Wall St. Journal Friday, Countrywide Financial Corp.’s savings bank is bringing in deposits at a pace of $50 million a day.
Countrywide plans to double the number of branches offering savings accounts, currently 112, to more than 200 over the next four to six months as most of their current branches don’t handle cash or offer checking and savings accounts.
The report also cited a regulatory filing which stated that Countrywide Bank had $60.96 billion in deposits as of June 30.
Of course, that was before the mad rush to pull out cash at the struggling mortgage lender took place in August, though it’s unknown how much net outflow occurred.
The ailing lender is banking on deposits to fund mortgage loans that the company has to keep on the their books as a result of the recent fallout in the secondary mortgage market.
Kenneth Posner, an analyst at Morgan Stanley, issued a report a few weeks ago saying he had “tentatively” concluded that Countrywide had “enough cash and cash flow to operate and repay financial obligations through 2008.”
In the recent WSJ interview, Chief Operating Officer and President David Sambol said the lender is “very stable” despite recent Countrywide bankruptcy woes and the need to borrow $12 billion in additional secured borrowing after the Bank of America investment and $11.5 billion acquired through a line of credit.
Sambol said, “We feel very good about where we are.”
Earlier this month, the top U.S. mortgage lender announced 12,000 layoffs, or 20% of staff and said production would dip 25% in 2008.