The risk of Bank of America Corp. defaulting rose to the highest since at least November 2001 after the biggest U.S. bank by market value said it will rescue Countrywide Financial Corp.Credit-default swaps tied to the bonds of Charlotte, North Carolina-based Bank of America increased 12 basis points to 92 basis points, according to broker [...]
Countrywide takeover increasing Bank of America’s Credit Risk
Bank of America to buy Countrywide for $4B
Bank of America Corp. will buy Countrywide Financial Corp. in an all-stock transaction worth about $4 billion.
The purchase will make the Charlotte-based bank the nation’s largest mortgage lender and loan servicer.
Bank of America (NYSE: BAC) is the largest mortgage lender in Harris County based on loans and the second-largest financial institution in the Houston area [...]