Friday, June 20, 2008

S&P Research Downgrades BofA

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.