Analysts say that a deal for Countrywide Financial to sell itself to the Bank of America could be at risk. The mortgage lender, which is the third largest in the US, last week announced a loss of $893m in the first three months of 2008, adding to speculation that the Bank of America could renegotiate of walk away from a deal altogether.
In a statement the bank made clear that the deal was still on by saying that the $4bn transaction was “on track to close as agreed”.