Analyst to B of A: Walk away from Countrywide

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It’s all about walking away these days, isn’t it? Homeowners are walking away from their mortgages, Microsoft walked away from Yahoo, and now an analyst is encouraging Bank of America to walk away from its deal to buy Countrywide Financial.

From CNBC.com: ‘Friedman, Billings, Ramsey analyst Paul Million said continued deterioration in the mortgage market, and weak pricing for nontraditional loans in the investment market, mean Bank of America would have to take between $20 billion and $30 billion in writedowns when it closes its acquisition of Countrywide.’

More: ‘’Bank of America should completely walk away from the Countrywide deal, as Countrywide’s loan portfolio will prove a drag on earnings and could force Bank of America to raise additional capital,’ Miller wrote in a research note.’

Not just walk away, but completely walk away.

Random follow-up: After hosting a weekend playdate for six kids, ages 1 to 4, I have new insight into B of A’s statement last week that it might not stand behind Countrywide’s debt. You see, the six kids watch each other closely to see what’s available, treat-wise, and who’s getting it. Juice boxes? Pancakes? Syrup? Once one kid gets a treat, out go the lower lips of the other five until they get theirs.

Bank of America, every bit as watchful as your average 4-year-old, wants what one of the other kids already got. The other kid is J.P. Morgan Chase, and it got a sweet deal from the government when the Fed guaranteed Bear Stearns debt. In this case, B of A is eyeballing the debt as a toddler would broccoli, saying, ‘I don’t want yucky debt and I won’t eat it! Jamie Dimon didn’t eat his!’

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Photo Credit: AP