amateur

No Reason for BofA - Countrywide Merger to Fail

I do have a position in CFC debt (not shares), so I'd like to share your confidence.
The problem is fear. Basically fear of finding that the losses on CFC portfolio finally exceed its bookvalue + reserves
No hard data point to such a shortfall sofar, but if panic spreads, people -BAC board- may prefer to pass on an opportunity rather than run some additional risk.
Ot the other hand, the deal is clever for BAC, and if they let it go, BAC may have to pay penalties, and some still cleverer private equity fund may finally find the courage to put a few billion to capture the leading mortgages issuer and keep it alive until better times return...