Tuesday, August 9, 2011

Whats your opinion on risks ociated with buying Countrywide Financial for the Bank of America acquisition?

you missed the biggest one. Losses in CFC's mortgage portfolio will require that BOA take bigger than expected writedowns. yes they got it cheap, relative to what they paid for a stake in it last year, but the problem is that no one knows how deep the housing recession will get. tba

No comments:

Post a Comment