L.A.-based lenders Countrywide Financial and IndyMac Bancorp saw their stock prices leap nearly 20 percent following reports that the Treasury Department had reached a deal to prevent further deterioration in the home mortgage market.
The agreement would allow banks to maintain low "teaser" interest rates for those homeowners in peril of foreclosure. Countrywide was one of four large lenders involved directly in the talks, according to various media sources. However, other lenders would probably opt in to the deal.
Shares of Calabasas-based Countrywide spiked as high as $12.03 on Friday morning a gain of nearly 30 percent from their Thursday close of $9.30. By mid-day the shares settled down in the $11 range, a gain of 18 percent from the previous day.
Likewise, IndyMac shares were up 18 percent to $9.82.
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