Countrywide Financial is running full-page ads in The New York Times and other newspapers across the nation to assure their customers that it is safe to continue to deposit money and maintain accounts at the 105 Countrywide Bank locations throughout the country. The ads come on the heels of a turbulent week for the Calabasas, Calif.-based company. As bankruptcy rumors for the lender swirled last week, the nation's largest mortgage lender turned to 40 banks, borrowing $11.5 billion to shore up cash.
The timely ads also coincide with reported layoffs on Monday within the company's Full Spectrum unit, which handles alt-A loans. Although the number of layoffs were not disclosed by the company, Full Spectrum employs a staff of roughly 6,800.
In the ads, Countrywide Bank President and COO Timothy Wennes says that the issues related to the corporation's mortgage woes have nothing to do with their bank division.
"The highly publicized issues related to the mortgage market do not impact the safety of the FDIC-insured deposits at Countrywide Bank," Wennes says in the ads, adding that "the future is bright" for Countrywide Bank.
Calls to Countrywide Financial for a comment on the layoffs and newspaper ads were not returned.