Is Bank of America Taking on Countrywide?

by Florida's #1 Mortgage Planner on January 10, 2008

The latest thing to hit the airwaves, and I mean this second as there is nothing in print yet…

"BANK OF AMERICA IS IN THE FINAL STAGES TO ACQUIRE COUNTRYWIDE"

Hopefully by the time I end this post I will be able to link to some article with more details, but for now, let’s just say, Countrywide is not going to go belly up, at least right now.  It goes without saying that the statements from CW about not going bankrupt are probably dependent on this deal going through and that may not happen, so they are not out of the woods yet.

I will update as I get more details…

(Update:  WSJ prints article finally)

In the Wall Street Journal article, it states that B of A is in advanced talks to acquire Countrywide Financial.  Here are some excerpts from the article that are of interest…

It isn’t clear how quickly a deal might be struck, but two people familiar with the matter said it could occur very soon. It also is possible that an agreement could be delayed or fall apart altogether…

Countrywide’s stock has plunged in recent days amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif., lender and others in the mortgage industry as home prices fall and the threat of a recession grows…

Since then, Countrywide’s default problems have continued to grow, sparking speculation that the company could face bankruptcy. Countrywide was forced to deny earlier this week that it planned to file for bankruptcy…

Remember that I have been mentioning that Bank of America would likely pick up the pieces from Countrywide.  Now it appears they want the whole thing, or at least want to ensure they get the best pieces and then can sell off the leftovers.

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