Paul E. Meisel

An Involuntary Transaction: Why BAC + CFC May Never Close

I have not been following CFC in detail as that play looked just too risky to me. BAC, on the other hand, decided to take some risk on the shotgun marriage -- in my opinion, based on the thesis that there was some value to salvage, that Countrywide could continue as a national mortgage originator, and therefore gain BAC share in an area that it is below average in....

I haven't seen anything that permanently disables that thesis. CFC equity and debt holders are certainly going to take some losses, the question is how much.