Filed under: Deals, Bad news, Short stories, Bank of America (BAC), Countrywide Financial (CFC), Stocks to Sell
Short interest in Countrywide Financial (NYSE:CFC) moved up by a big 26 million shares as of May 15 to 102.4 million compared to the number on April 30. Someone thinks the deal for Bank of America (NYSE:BAC) to take the company over may be in trouble. Shares of a number of other financial companies were also hit hard during the period.
With everyone, including the FBI and US Congress, looking into Countrywide's lending practices and stock sales by management, the short gamble may be a smart one. The troubles at the lender may become so numerous that BAC can't stand the smell.
There may be another, less obvious, reason the the shorts think the CFC/BAC deal is in trouble. That would be Bank of America's share price. Wall Street has lost a lot of confidence i
...
$21.75 (05/22/08)
