It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Taxpayers to foot the bill for countrywide's sins

page: 1
0

log in

join
share:

posted on Jan, 13 2008 @ 12:39 AM
link   

Countrywide\\


money.cnn.com

NEW YORK (Fortune) -- Guess who\'s helping Bank of America pay for its $4.1 billion purchase of Countrywide Financial? Answer: The taxpayers of the United States.....

That\'s because Bank of America (BAC, Fortune 500), which is solidly profitable, will be able to use some of Countrywide\'s losses to offset its own taxable income. The tax break could total about half a billion dollars over the first five years, according to an estimate by tax guru Robert Willens, who left Lehman Brothers Friday after a 20-year run and will be in business as Robert Willens LLC starting next week. The losses could be worth considerably more to Bank of America starting in the sixth year, depending on how big Countrywide\'s losses are when Bank of America formally acquires it.

(visit the link for the full news article)



[edit on 13-1-2008 by jefwane]




posted on Jan, 13 2008 @ 12:39 AM
link   
Hmmm so maybe BoA didn\'t buy CFC for its intrinsic value. Read the article and it looks like BoA has done something similar to this befoe. CFC was a definate Bankruptcy play before this deal. The only thing CFC has that BoA could possibly see as a long term asset is the servicing portion of CFCs business. I\'ve read on bulletin boards (i know) that the only thing of value left in CFC is there servicing platform.

money.cnn.com
(visit the link for the full news article)

EDIT: Full disclosure: no position in CFC, BAC or XLF. However seriously considering buying puts against BAC with this move.

[edit on 13-1-2008 by jefwane]



new topics
 
0

log in

join