More Bank Of America: Default on Countrywide Debt?
Get Out, There's A Hole In The Bridge!... Friedman, Billings, Ramsey analysts:
B of A, #2 U.S. bank, should abandon its takeover of Countrywide Financial because the mortgage lender's loans may be written down by as much as $30 billion.
"Countrywide's loan portfolio has deteriorated so rapidly that Countrywide currently has negative equity
and the acquisition will be a drag on Bank of America's earnings. Bank of America should completely walk away from the Countrywide deal,
as Countrywide's loan portfolio will prove a drag on earnings and could force Bank of America to raise additional capital."
Insiders say that B of A may attempt to reprice their buyout offering from $7 a share to $2 or 3 per share.
Hattip to Bloomberg.
B of A, #2 U.S. bank, should abandon its takeover of Countrywide Financial because the mortgage lender's loans may be written down by as much as $30 billion.
"Countrywide's loan portfolio has deteriorated so rapidly that Countrywide currently has negative equity
and the acquisition will be a drag on Bank of America's earnings. Bank of America should completely walk away from the Countrywide deal,
as Countrywide's loan portfolio will prove a drag on earnings and could force Bank of America to raise additional capital."
Insiders say that B of A may attempt to reprice their buyout offering from $7 a share to $2 or 3 per share.
Hattip to Bloomberg.
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