Daily Dispatch: Countrywide Financial, Amgen, Netflix, and J.C. Penney

  • Countrywide Financial Corp. tapped its entire $11.5 billion credit line to offset a surge in loan defaults and to address the company's liquidity crunch. CFC plans to originate mostly conforming loans, which are backed by government-sponsored entities like Fannie Mae, from this point forward, nearly eliminating its riskier mortgages. CFC hopes this move will save the company from bankruptcy despite its difficulty securing funding sources.