Bank of America (BAC) Cut To SELL on Countrywide (CFC) Debacle

S&P cuts Bank of America (BAC) to Sell on concerns about crappy Countrywide portfolio, impending dividend cut, and rising loan-loss provisions:

We take unfavorable note of the large Countrywide option-adjustable rate mortgage portfolio that Bank of America will inherit, since we believe this portfolio has yet to be stress tested

S&P was also concerned that BofA would increase its loan loss provision and is now predicting that BofA will cuts its dividend. FY2008 EPS falls from $2.67 to $2.16 and target from $33 to $24.

See Also:
Bank of America Hobbled By Countrywide Disaster, Ken Lewis Should Go
Bank of America (BAC) CEO Still Defends Imploding Countrywide (CFC) Deal–Meredith Whitney

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