Bank of America/Countrywide: Taxpayer Hooked?

It's not news that Bank of America will purchase Countrywide.

But there's an interesting line in the story:

It's expected to be neutral to Bank of America earnings per share in 2008 and lift EPS in 2009, excluding merger and restructuring costs.

That line should catch your attention. The clear implication is that there's no noticeable "red ink" possibility foreseen by BoA downtrack.

How can that be?

Next article, (rumor-fed):

1. The Fed is behind the deal.
2. The Fed is behind the deal because the rumors yesterday of a near bankruptcy were probably true.
3. As part of the deal, the Fed likely agrees to guarantee BofA against Countrywide-related losses.

NOW the first article makes sense. Except, of course, for those who will pay for the Fed's "guarantee."

Wanna guess who that might be?

HT: Calculated Risk