Countrywide deal still on

Shares in the Calabasas-based mortgage company are up around 7 percent today, presumably on the comments of Bank of America CEO Ken Lewis who told analysts this morning that the company still plans to purchase Countrywide, though some terms of the deal could change to reflect market conditions. Countrywide stock nosedived last week on concern that Bank of America might bail out of the $4 billion deal. If the purchase were to fall through, Countrywide could face a $160-million termination fee. From the NYT:

“We did extensive due diligence,” Mr. Lewis said. “We had 60 people inside the company for almost a month. It was the most extensive due diligence we have ever done. So we feel comfortable with the valuation. “We looked at every aspect of the deal, from their assets to potential lawsuits, and we think we have a price that is a good price,” he added. Still, completing the Countrywide deal could be precarious, mostly because it is placing such a big bet on retail banking at a time when many consumers across the country are feeling stretched thin.