"''There is no assurance that any such debt would be redeemed, assumed or guaranteed,' the Charlotte, North Carolina- based bank said in an April 30 regulatory filing, adding that no decision has been reached. Investors have grown more optimistic the bank would back Countrywide debt, and Standard & Poor's said this week it may raise Countrywide's rating to match Bank of America's.
'I'd be quite concerned if I was a bondholder if the intent of Bank of America is as it reads in the filing,' said Gary Austin, founder of PDR Advisors LLC, an investment management firm in Charlotte."
"Whalen expects Bank of America will seek to absorb the best assets including Countrywide Bank, while the debt remains with a new company created by the merger, Red Oak Merger Corp. Red Oak may then file for bankruptcy, shielding Bank of America from liability, Whalen said."
Those of you who didn't unload either the preferred or the CFC bonds when you had the chance, after I warned 'ya - there's a word for you tomorrow.
"Note that on the conference call with BAC this morning they were very evasive about whether they would be taking CFC's debt onto their own books. Gee, you think?
Uh guys, the answer to a question that someone won't answer is a big fat NO!"
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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