Friday, June 20, 2008

S&P Research Downgrades BofA

by Bill McBride on 6/20/2008 02:17:00 PM

From MarketWatch: S&P cuts Bank of America to sell from hold

"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.
Not stress tested ... yet. The losses are coming for these Option ARM (and HELOC) portfolios.

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