Watching BofA acquire Countrywide is like watching what happens when an high-art glass studio experiences a magnitude 9 earthquake. So how come BofA thinks buying Countrywide is a good thing? This was something I asked in January when this deal was announced. And today, it seems that the S&P doesn't like the answers to that question as they just downgraded BofA's stock because of the deal:
"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 said in its action.
Stress-tested. Yup, that would be a good way to put it.
Your turn now.