FLASH FLASH FLASH: BofA looking to cut Countrywide bid to $0 to $2, leading analyst recommends they just walk away from the orange pig

Tomorrow's news today, here on HousingPANIC. So when BofA walks away, Countrywide goes bankrupt, and Angelo Mozilo is indicted, there should be no surprises.

Remember when we said 1 penny was too much to pay, and that this deal would NEVER EVER go through? Countrywide is every STD in the book. BofA would have to be the stupidest company on earth to hook up with them. And the Countrywide lawsuits and liabilities for years to come will be staggering.

This gem hot off the wires just now:

BofA may lower Countrywide bid to $2/share or below

Bank of America Corp. is highly likely to negotiate a sharply lower price for Countrywide Financial Corp, and should just walk away from the deal altogether, an analyst said Monday.

Bank of America could face $20 billion to $30 billion in write-downs of Countrywide's mortgage loans after it closes its acquisition of the troubled mortgage lender, FBR Capital Markets analyst Paul J. Miller Jr. told clients in a research note.

"BAC should completely walk away from the CFC deal, as CFC's loan portfolio will prove a drag on earnings and could force BAC to raise additional capital," Miller wrote.

Even if Bank of America sticks with the deal, it's likely that it will cut its offer "down to the $0 to $2 level," and force Countrywide's bondholders to absorb the remainder of any write-downs, the analyst said.

Genuine Bank of America ad. You fill in the punchline

Thanks Michael for the pic