Countrywide to be bailed out by Bank of America

The rumors still continue to swirl about Countrywide heading towards filing bankruptcy. Bank of America stepped in with a 4 billion dollar bail out plan. The last thing this country needs is a big bank failure. This would only fuel more financial uncertainty in the current credit crisis in this country. The merger wouldn’t seem to have much that that the regulators could bark about. Well, there is one thing. The total deposits held by BofA is about 9.88% of all US deposits. The limit is 10%. If Bank of America takes Countrywide on, that would probably put them over the top. I think they may have to overlook it in this instance. To much in the credit markets is at stake.

What do you think Countrywide should do?

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