Countrywide's stock plunged, customers started to yank their deposits from its banking arm, and trading partners backed away from the firm. Later in 2008 came the collapse of IndyMac Bank, a California subprime lender that Mozilo and Countrywide had started in 1985 and later spun off as an independent company.
Likewise, is Countrywide still in business?
On July 1, 2008, Bank of America Corporation completed its purchase of Countrywide Financial Corporation. In 1997, Countrywide had spun off Countrywide Mortgage Investment as an independent company called IndyMac Bank. Federal regulators seized IndyMac on July 11, 2008, after a week-long bank run.
One may also ask, who took over Countrywide Bank?
Bank of America Corporation
Why did Bank of America buy Countrywide?
Because it is an all-stock transaction, Countrywide investors will benefit if Bank of America stock rises, which it did Thursday. As the largest U.S. mortgage lender, Countrywide helped fuel the housing boom by offering loans to high-risk borrowers.
Why did Countrywide go out of business?
Technically Countrywide did not go out of business but rather was acquired by Bank of America In 2008. However had BofA not stepped in they certainly would have gone out of business completely. The very short version of why they ultimately went out of business was a crisis of confidence in their name.