Bank of America balks

[Tejas]

I am surprised I have not heard any dialogue over BoA making noise about the Countrywide buyout. It seems the more they dig into the books, the less they like the deal.

The question then becomes, does Countrywide get 'marked to market' and create the acceleration event that implodes the market for all this bad debt triggering the implosion of the financial markets? Who buys them now that it is reported publicly that they have "negative equity" in their portfolio? What gov't agency privatizes them to prop up the market?

There are some really well informed folks with a great knowledge and understanding of the financial markets. I would be interested to hear their take on what happens if BoA walks, or if this is a ploy to get the Fed to sweeten the incentive pot for more than the reported $30B in guarantees.

http://www.marketwatch.com/news/story/a ... ist=msr_14