Countrywide Earnings Eyed Before Deal

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Investor concerns that Bank of America Corp. might try to pull out or pay less for Countrywide Financial Corp. could intensify next week when the troubled mortgage lender reports 2007 year-end financial results, the Associated Press reports.


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


Wall Street has its doubts – most analysts expect Countrywide to post a fourth-quarter loss – and will be watching closely Tuesday when the Calabasas-based company reports its results.


Investors will be looking for signs that suggest worsening fortunes at the nation’s largest mortgage lender – and a possible about-face by Bank of America.


“Bank of America is going to take a close look at Countrywide’s business and see … whether or not it is able to get value from the purchase,” said Sean Egan, managing director of independent ratings firm Egan-Jones Ratings Co.


Read the full Associated Press story

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