Skip navigation

Slick BOA Trick

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
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?
May 6, 2008 12:24 pm

they won’t do that. it would have great ramifications throughout the financials. Lewis is playing a high stakes game and bluffing.

May 6, 2008 1:16 pm
ezmoney:

they won’t do that. it would have great ramifications throughout the financials. Lewis is playing a high stakes game and bluffing.

  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.
May 6, 2008 10:30 pm

for lewis to even incinuate that tells us alot about lewis