by Calculated Risk on 5/05/2008 09:03:00 AM

From Reuters: BofA may renegotiate Countrywide deal price: Friedman

Bank of America Corp is likely to renegotiate its deal to buy Countrywide Financial Corp down to the $0 to $2 level or completely walk away from it, said Friedman, Billings, Ramsey, [analyst Paul Miller] ...

Countrywide's loan portfolio has deteriorated so rapidly that it currently has negative equity ...

"We estimate that if fair-value adjustments to the loan portfolio could exceed approximately $22 billion, this would increase the odds of Bank of America renegotiating the transaction or walking away," Miller said.

Oh no, not negative equity! Hoocoodanode?