Breaking Reports: Bank Of America In Talks To Buy Countrywide

Word is out and it is being reported wide and far that Bank of America is in talks to buy ailing Countrywide Financial. It is reported that B of A, who invested $2 Billion in Countrywide last summer, has been in talks to aquire America's largest lender for the past week and a half. Countrywide, which reported dramatic increases in foreclosures just this past week, has been subject to bankruptcy rumors for weeks. The potential for a buyout sent the company's shares soaring in late trading today, for a one day gain of over 50%. Still with a close at $7.75, the stock is nearly $37 off of it's year high. Yet, such a buyout buoyed Wall Street's hope of avoiding yet another gruesome chapter in the sub-prime debacle and sent the Dow Jones Average to a 117 point gain on the day. Additionally, Fed Chief Bernanke, strongly hinted that he is willing to take "substantive additional action" to keep the economy growing. Such talk makes the likelihood of a 50 basis point reduction in the fed funds rate at the end of the month meeting or sooner a strong possibility.
B of A In Talks To Aquire Countrywide (NY Times)
A Rescue Mission (CBS Marketwatch)
B of A Countrywide Deal Near (WSJ.com)
Countrywide Shares Soar (LA Times)