Countrywide is the biggest mortgage lender in the US. The company also invested a ton into the subprime mortgage market. The result? Subprime mortgage writedowns are cutting heavily into the company. And if that weren't enough, Countrywide is bleeding heavily out through the rising rate of foreclosures.
Enter Bank of America. The company announced in January that it would be the ailing mortgage market giant. And, despite recent speculation that Bank of America would pull out as Countrywide continues to lose copious amounts of money, the merger is still on.
Perhaps when this is all over, maybe Bank of America will find that it made a good decision. After all, Countrywide has an innovative model. But for now, all that is happening is that Bank of America stock is dropping.
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