B of A to Shut Down it's Wholesale Lending Division?
Sounds like bad news right? Or could it be the financial play of the decade? Here's what I'm guessing will happen tomorrow in the financial markets.
Countrywide releases it's third quarter earnings tomorrow and guess what, they are going to suck! Countrywide stock will plummet from its current trading range of 17 down to around 12 bucks a share. Remember who rescued Countrywide and kept them from going under 2 months ago with a massive cash infusion? Bingo - Bank of America; B of A to the rescue again buying shares of Countrywide and propping up thier stock - this time with a catch. Here's how the conversation will go: "Your welcome Countrywide. Oh and by the way......since we (Bank of America) just announced the closing of our wholesale division, perhaps we could take over yours? Thanks, I knew you wouldn't mind."
This way everyone wins, Countrywide doesn't "sell" the company, they just give up control in return for badly needed capitol. For their efforts (or cash) B of A takes over a commanding interest in the biggest loan servicing company in the US. Countrywide stays afloat and B of A becomes an even bigger financial juggernaut. So you see, the news isn't all bad.
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Yes it is not bad after all
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I admit, I have not been on this webpage in a long time... however it was another joy to see It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues.
Great stuff as usual....
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I think this blog is nice. The Idea of closing a business definitely is not so easy to digest. There is completely necessary to have in mind different kind of plans or strategies, more in these crisis moments.
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I agree with you, the idea of closing a business is very difficult to make, but sometimes is better to close that to waste more time and money. I’m looking forward to hear more from you.
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Definitely when that situation come up it is necessary to think about pros and cons and figure out the best decision.
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