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Bank of America's credit protection costs rise

NEW YORK
Tue Jul 1, 2008 8:46am EDT

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A Bank of America ATM location is seen in Somerville, Massachusetts May 5, 2008. REUTERS/Brian Snyder

A Bank of America ATM location is seen in Somerville, Massachusetts May 5, 2008.

Credit: Reuters/Brian Snyder

NEW YORK (Reuters) - Bank of America's (BAC.N) credit protection costs rose on Tuesday ahead of its acquisition of battered mortgage lender Countrywide Financial Corp CFC.N, according to data from Phoenix Partners Group.

The cost of protecting $10 million of Bank of America's debt for five years with credit default swaps rose to $125,000 a year, up from $110,000 at Monday's close.

Charlotte, North Carolina-based Bank of America is due to complete its acquisition of Countrywide, the largest U.S. mortgage lender, on Tuesday.

(Reporting by Dena Aubin; Editing by James Dalgleish)


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