Quote:
Originally Posted by jyl
In buying CFC, BAC is making a big bet, possibly throwing good money after bad. Who knows how much more money they will have to invest to keep CFC afloat? The deal is certainly not being done for tax reasons.
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That idea is being thrown around liberally on financial blogs. BAC could be making a great investment, or they could be buying pure crap.
Everything I've read indicates CFC is still on shaky ground. It's hard to justify buying an asset with an unstable foundation, but what do I know? I'm still mildly bearish on housing.