Bank of America (BAC) has agreed to buy Countrywide Financial (CFC) for $4 billion, or $7.16 per share.  Sources were quoted as saying the deal is 31% of CFC book value.  The deal could close by 3Q.  A lot can happen between now and then.  The market needs to understand a lot more about this deal.  Moody's is already hinting a downgrade for BAC, so one can see a ton of issues that could derail this deal and potentially hurdle CFC into bankruptcy.

There are also rumors that JP Morgan Chase has been in talks to acquire Washington Mutual; which is a commentary on just how serious these issues are.  Companies that would not have even thought about these mergers 18 months ago, are doing it now just to survive.

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