Bank of America wins approval to buy Countrywide

Is this really any surprise? We know the Federal Reserve likes this sort of thing -- arguably, they've even proved they are willing to break the law to stick two banking organizations together if they think it will prevent something even more unsightly from occurring.

The real question now is whether BofA will actually want Countrywide:

Countrywide lost about $1.6 billion in the last six months of 2007, and the company faces numerous investigations and lawsuits related to its lending practices.

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In recent months, some analysts have speculated that the deal may be completed at a lower price because of further deterioration in the mortgage market and a continued rise in mortgage delinquencies and defaults.

Experts have said that the deterioration of the mortgage market and Countrywide's loan portfolio could lead to costly write-downs and create a drag on Bank of America's earnings.

But on Monday, Lewis told analysts on a conference call that he believed buying Countrywide was still a good deal even though the housing market had continued to falter since the deal was announced.

Usually in business it helps to be able to put a realistic valuation on a company being acquired -- which involves having a decent reading on what assets and liabilities really are. Can anyone honestly say they know what Countrywide's liabilities are? I certainly think we have an upper ceiling on assets...