Sandler O'Neill, which has been following Countrywide's stock for years, says it is unlikely that Bank of America will buy the nation's largest mortgage banking firm.In a research note issued Jan. 26, Sandler analyst Mike McMahon declared that "one way for a commercial bank to destroy market value is to buy a big mortgage company." However, Mr. McMahon writes that the "likely scenario" is that Countrywide is talking to BoA about a possible outsourcing arrangement whereby Countrywide would process (and presumably service) residential mortgages for the bank. Countrywide, which has a depository affiliate, has scheduled its fourth-quarter earnings conference call for noon on Jan. 30. Presumably, the BoA issue will come up during the call.
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