Attention Fence Sitting Buyers: What Do the Leaders of Bank of America Know That You Don't? "Bank of America to Buy Countrywide Bank"

Bank of America to Buy CountrywideBank of America Corp. announced today that it has agreed to buy Countrywide Financial for $4 billion in stock. "Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation's premier lender to consumers," Bank of America Chief Executive Ken Lewis said in a statement.

The sale will place the responsibility of sorting out the payment issues surrounding millions of dollars worth of troubled loans on Bank of America.

The agreement has been approved by both companies' boards and is subject to regulatory and Countrywide's shareholders approval.

Source: The Associated Press, Ieva M. Augstums (01/11/08)