When I first read the headline, I thought fair enough – if Bank of America backs out they should pay a breakup fee.
But alas, it’s Countrywide that will be doing the paying.
Potentially scary for the troubled mortage lender. While we don’t have full details, you might expect to see some type of minimum net asset clause and/or litigation contingencies in the deal sheet, meaning if Countrywide happened to have more skeletons in the closet they would wind up paying for it.
UPDATE: The Wall Street Journal agrees, and also notes that Countrywide stock price reflects a decent amount of skepticism.