Bank of America is now being urged to reconsider their Countrywide bid. Ari Levy and Christopher Stern, Bloomberg News, report that Sen Chuck Schumer (D-NY) wants BofA to consider cutting the $4 billion price tag for the deal. Investors have speculated that Bank of America may seek better terms or cancel its takeover of Countrywide...

Glenn R. Simpson and Evan Perez, Wall Street Journal, report that the Federal Bureau of Investigation is probing subprime lender Countrywide Financial Corp. for possible securities fraud. Another potential issue facing the company is whether it has been candid in its accounting for losses.

After posting its first quarterly loss in 25 years, a $1.2 billion loss, in the third quarter ended Sept. 30, Countrywide declared it would post a profit for 2007’s final three months and through this year

This is a great article which lays out how the Countrywide deal came about and how much short term pain Bank of America may be in for.

Article about why Bank of America's purchase of Countrywide will be a great investment. Bank of America will endure some short-term pain because of Countrywide's mortgage portfolio but the long-term benefits of gaining Countrywide's market share, infastructure, network, and distribution are larger.

All their current problems arise out of the tanking of their banking business, since investors no longer have the confidence to make deposits, or even keep existing deposits with Countrywide...So what should be the solution?

Countrywide Financial Corp (CFC) Chief Executive Angelo Mozilo said he doesn’t expect the largest U.S. mortgage lender to file for bankruptcy protection, saying the “elements are certainly not there.”

By DAMIAN PALETTA, VALERIE BAUERLEIN and JAMES R. HAGERTY
January 10, 2008 2:37 p.m.

Bank of America Corp. is in advanced talks to acquire struggling Countrywide Financial Corp., according to people familiar with the situation.

Merrill is expected to get $3 billion to $4 billion, much of it from a Middle Eastern government investment fund. Citi could get as much as $10 billion from Singapore's GIC...Countrywide on collision course with bankruptcy...

Reports surfaced that billionaire Warren Buffett may buy parts of Countrywide. Reports from the Wall Street Journal state that Countrywide’s debt-servicing and its mortgage portfolio - mortgage backed securities may be attractive to Buffett.