Countrywide (CFC) in trouble, merger talks and rumors - it kinda reminds me of Northern Rock (NHRKF.PK). Lots of empty promises and we will finish with a nationalized bank, maybe the RTC again.

Bank of America (BAC) has forgotten the $51 billion dollars of advances Countrywide has with the Federal Home Loan Bank of Atlanta. (Search for "countrywide" in this SEC filing for FHLB Atlanta). For Bank of America to even consider taking on debt of such magnitude is nonsense. Bank of America would need to buy $25,000,000 worth of stock in the Federal Home Loan Bank of Atlanta to join and purchase an additional amount of stock representing 4.5% of Countrywide's total advances with the FHLB of Atlanta (25,000,000 + (0.045 x $51,000,000,000) = $2,320,000,000).