Countrywide: Potential Short Squeeze in the Offing

Media reports that Bank of America (BAC) is targeting July 1, 2008 as the date for its acquisition of Countrywide Financial (CFC) have the potential to create a huge impact on the market if accurate. Reports that a letter sent to Countrywide branch managers specifying July 1st as the date are supported by SEC filings showing that Bank of America has shelved the appropriate number of BAC shares and CFC filings, placing a ban on Countrywide executives from trading between June 27th through July 2nd.

All of this is assuming that CFC shareholders approve the merger on June 25th, 2008.