Countrywide Financial Corp. (CFC)

[j_sauce]

NYT says BAC to buy CFC for 4 billion in stock

If the deal goes down as stated in this article and you bought Thursday on the rumors you are about to get screwed.

http://www.nytimes.com/2008/01/11/business/11bank.html?_r=1&oref=slogin

from the article

Countrywide Financial, the troubled lender that became a symbol of the excesses that led to the subprime mortgage crisis, is close to being acquired by Bank of America for slightly more than $4 billion in stock, people briefed on the transaction said Thursday.

Directors for both companies have approved the deal, which is expected to be announced Friday, these people said.

Shareholders, however, may be disappointed with the price, which is nearly $500 million less than Countrywide’s value on Thursday. Because it is an all-stock transaction, Countrywide investors will benefit if Bank of America stock rises, which it did yesterday.