Thursday, September 13, 2007

Bank of America raises fees due to Countrywide- what?

Today Bank of America (BAC) announced that they would raise their ATM fee for noncustomers from $2 to $3 per transaction.

Dealscape goes out on a limb and contemplates whether the ATM fee increase was imposed to cushion earnings against potential losses on their Countrywide (CFC) investment.

ok... what?

Anyone else see absolutely no connection between these events?

In other news, Countrywide secured another $12 billion from their credit lines. This brings the total emergency liquidity funding number to $25.5 billion.

Countrywide shares rallied on the news, sending Bank of America's investment back into the green. I guess we will have to wait and see if BofA cancels the ATM fee increase.

0 comments:

 

DISCLAIMER: This is a personal web site, reflecting the opinions of its author. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.