The key difference between Countrywide and Home Capital is that the latter's mortgage book has not been shown to be soft.   That is, we don't actually know, but to all appearances the book is solid, and the insolvency is entirely attributable to a run on the deposits of the bank.  This, in spite of CDIC insurance.  One wonders why Home Capital does not issue 4-5% long term GICs instead of the ridiculous rates on the $2 billion line of credit.  At an attractive rate, and with CDIC insurance, many retail investors would purchase them.  Tell me if I'm wrong.  The present 1-2% is simply out of line with the perceived risk.