Cerberus wants to Cancel H&R Block Deal

It looks like some of those private equity guys are getting cold feet when it comes to doing certain deals.

H&R Block is negotiating with Cerberus to waive some closing
requirements and close before a December 31 deadline, but said there is "no
assurance" any transaction will occur.

Losses at Option One contributed to an overall loss of $302.6
million, or 93 cents per share, for the fiscal first quarter that ended July 31.
That is up from a loss of $131.4 million, or 41 cents per share, a year
earlier.

Cerberus seriously doesn't want to start racking up big losses just to get their hands on that Option One mortgage servicing business. It looks more and more like the sub prime loans that people have made are like a hot potato that no one wants at any cost. I'm still thinking that the tax payer will end up taking to loss to prevent massive foreclosures.