The Wall Street Journal is reporting a deal today between Bank of America and Countrywide Home Loans worth $2billion dollars. The move is said to boost investor and public confidence. Countrywide is displaying it’s power, making moves to beef up their equity in a time where the market news seems dismal. Talks of a merger between Countrywide and Bank of America have been dismissed, but this move just shows that Countrywide has the power to obtain support when necessary.
Subprime lenders are still struggling to maintain business with two additional midsized lenders closing: Lehman Brothers and Greenpoint Mortgage. Other larger institutions are reducing their subprime loan offerings, and making moves to strengthen assets.
Comment Preview