Something interesting I read about Bank of America..
Is this a precursor to BAC just walking and saying “sorry what $38billion countrywide debt? We don’t recognize there is $38billion in debt. Thanks for playing.”
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BofA shuffles Countrywide debt
Bank of America Corp. has moved Countrywide Financial Corp.’s debt to an indirect unit owned by the banking giant, leaving it unclear whether BofA will back Countrywide’s huge debts.
According to a filing this week with the Securities and Exchange Commission, Countrywide says Red Oak Merger Corp. assumed all of the Calabasas, Calif.-based mortgage company’s financial obligations in conjunction with the July 1 purchase of Countrywide by BofA for $2.5 billion.
BofA created Red Oak and remains its owner. Red Oak has since been renamed Countrywide Financial Corp.
The SEC filing did not discuss BofA’s long-term plans for Countrywide’s debt.
In May, BofA threw the status of Countrywide’s debt in doubt when it said in a separate SEC filing that it could give “no assurance” that it would back the mortgage lender’s debt of $38 billion.
