The Wall Street Journal just reported that Bank of America is in advanced talks to acquire Countrywide. It isn't clear how quickly a deal might be struck. Bank of America last August propped up Countrywide by buying $2 billion of preferred shares convertible into a stake of about 16% in the lender. The total market value of Countrywide has plunged to about $3 billion.
Too bad. It looks like they will avoid bankruptcy after all. Although I am unclear why BoA would want them in the first place. Perhaps after some due diligence this deal will fall apart, but presumably BoA already did a lot of due diligence when they bought their stake in August (although maybe not given how poorly that stake has performed since then).
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