5/6/2008

Analysts say Bank of America Corp. will probably lower its takeover price for Countrywide Financial Corp. or possibly even abandon the deal altogether. Although many hope the deal will be completed and rescue Countrywide from an uncertain future, problems at the mortgage lender have intensified, making the agreement less attractive. An analyst with Friedman, Billings, Ramsey said in a note to clients that Countrywide's portfolio has rapidly deteriorated to the point where the proposed takeover would be a drag on the earnings of Bank of America.

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