Just days after rumors circulated that the oracle of omaha may be interested in Countrywide the number one mortgage lender who was facing some tough time and laying off employees, Bank of America came to the rescue by investing 2 billions dollars.
This is good news because it brings some stability to the market. This action follows multiple cash infusions by the fed and other central banks and the recent lowering of the discount rate. All these actions are designed to keep the market liquid, i.e. continue to fund loans.
Other news:
Lehman Brothers is closing BNC, its subprime arm just after HR BLOCK pulled the plug on Greenpoint Mortgage. Capital One also closed its subprime branch.
http://www.nytimes.com/2007/08/23/business/23lend.html
Home Value
No comments:
Post a Comment