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Banking, finance, and taxes

Do The Countrywide (CFC) Bond-Holders Take Bank Of America (BAC) To Court?

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By Douglas A. McIntyre Published
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As far as anyone knows, Bank of America (BAC) is buying Countrywide Financial (CFC). The CFC stock price would indicate that the market has its doubts about whether the deal will close.

The groups really sweating the deal are the Countrywide bond-holders. According to The Wall Street Journal, Bank of America "has given few details about what will happen to about $25 billion in Countrywide bonds as part of the deal." The question becomes whether BAC can dodge the obligation Countrywide has to the debt-holders.

Bank of America says that Countrywide is a "separate legal entity". That may be true, but it is less so, or not so, once it has been bought.

Bank of America may use the technicality about "separate" to stiff bond-holders. That is likely to end up in court.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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