Slick BOA Trick
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May 4, 2008 12:07 am
Everyone is familiar with BOA's purchase of Countrywide. Well, BOA may pull a neat little trick on Countrywide's bondholders. Below is a snippet with a link to the article below:
"Investors have been asking Bank of America about plans to back Countrywide's debt since January, when the issue was raised in a conference call to discuss the merger. The bank has demurred ever since. Bank of America spokesman Scott Silvestri said today that the filing ``just means we haven't made a decision.'' ...Whalen expects Bank of America to absorb the best assets, including Countrywide Bank, while the debt remains with a new company created by the merger, Red Oak Merger Corp. Red Oak may then file for bankruptcy, shielding Bank of America from liability, Whalen said."
http://www.bloomberg.com/apps/news?pid=20601087&sid=aXNMMNWfaz8I&refer=worldwide Neat trick, eh?they won’t do that. it would have great ramifications throughout the financials. Lewis is playing a high stakes game and bluffing.
ezmoney:
You're undoubtedly right, but think about it...wouldn't THAT scenario open a fascinating can o' worms? The simple fact that they're thinking that (let alone saying it) says some interesting things about corporate America.they won’t do that. it would have great ramifications throughout the financials. Lewis is playing a high stakes game and bluffing.