One of the rumors swirling about the mortgage industry is that Countrywide, the largest U.S. mortgage lender, is going to file for bankruptcy. Some analysts predict that Countrywide will need a large infusion of cash if it is going to recover heavy losses sustained by the subprime crash. MarketWatch reports on Countrywide’s troubles:

"Countrywide is severely challenged and might falter if it does not
receive an infusion of at least $4 billion within the next couple of
weeks," Egan-Jones Ratings Co., a ratings agency, wrote in a note
Tuesday.

Additionally, there are issues surrounding reports that Countrywide falsified some documents. Countrywide, however, insists that it has no plans to file for bankruptcy.