Comments on: Bank of America Not Backing Out of Countrywide http://emac.blogs.foxbusiness.com/2008/06/11/bank-of-america-not-backing-out-of-countrywide/ Fri, 20 Nov 2009 19:57:36 -0500 http://wordpress.org/?v=2.8.5.2 hourly 1 By: DrDetroit http://emac.blogs.foxbusiness.com/2008/06/11/bank-of-america-not-backing-out-of-countrywide/comment-page-1/#comment-1642 DrDetroit Wed, 11 Jun 2008 18:21:15 +0000 http://emac.blogs.foxbusiness.com/2008/06/11/bank-of-america-not-backing-out-of-countrywide/#comment-1642 Countrywide brings nearly 100 Billion in debt to BoA's balance sheet. I scratch my head on this one. The only thing I can think of is perhaps this is regarding Bank of America's problem regarding it having reached it's 10% allowed maximum of US citizen's deposit accounts. BoA can not take on any more deposit accounts, and without fresh blood or money coming in, it's hard to expand OR make losses on a balance sheet look better. I figure BoA can go over seas or well- buy CountryWide for its banking side. My guess is BoA picked up CW for access to its banking and hope either FHA or US Federal Reserve will step in and help curtail the losses already imposed on CW, diminishing the losses that CW brings to the table. Countrywide brings nearly 100 Billion in debt to BoA’s balance sheet.

I scratch my head on this one.

The only thing I can think of is perhaps this is regarding Bank of America’s problem regarding it having reached it’s 10% allowed maximum of US citizen’s deposit accounts.

BoA can not take on any more deposit accounts, and without fresh blood or money coming in, it’s hard to expand OR make losses on a balance sheet look better. I figure BoA can go over seas or well- buy CountryWide for its banking side.

My guess is BoA picked up CW for access to its banking and hope either FHA or US Federal Reserve will step in and help curtail the losses already imposed on CW, diminishing the losses that CW brings to the table.

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