Bank of America's risky bet

Bank of America's risky bet

articles.moneycentral.msn.com

The endgame in Bank of America's (BAC, news, msgs) $4 billion takeover of Countrywide Financial (CFC, news, msgs) began with a December phone call from Countrywide Chief Executive Angelo Mozilo to his Bank of America counterpart, Kenneth D. Lewis.

After more than six months of financial deterioration at Countrywide -- despite a $2 billion infusion of cash from Bank of America in August -- Mozilo said he was ready to throw in the towel, according to Lewis.

(visit the link for the full news article)


Related News Links:
www.realestatejournal.com
www.countrywidehomeloansucks.com
www.chron.com
www.nytimes.com

The fatcat bankers buddy up and Bank of America gets a mortgage portfolio worth 24 Billion a year ago for a mere 4 Billion in stock shares. So a large corporation gets larger at the expense of mortgage holders. The story even alludes to the fact that depreciated value was caused by bad press and lawsuits.
There are many stories out there of ripoff loans by Countrywide, I provided a link.
The state of Texas gave them cash for jobs and B of A inherits such contracts. The New York Times story I linked to indicates B of A is "shedding" jobs.
quote NYT
"shedding an additional 650 jobs after suffering heavy trading losses from bad mortgage investments." end quote

That story is in direct contradiction to contracts inherited from the Countrywide buyout.

Further, Lewis made a statement "I’ve had all the fun I can stand in investment banking" previously which hastened the fall of the mortgage market. How convenient that he is now scooping up Countrywide after its value has tanked.

The ground here is ripe for conspiracy, start digging and have fun.



articles.moneycentral.msn.com
(visit the link for the full news article)

Countrywide was one of the major players on the housing crash, they were doing deceiving practices and loans, now their CEO gets to bail out with a fat check and not accountability, no arrest no jail sentence.

Now Bank of America a financial institution that the reason it wasn't hit with the mortgage write outs is because they were not heavily into mortgages, but is well know to be one of two banks in America that are very good at robbing its costumers when it comes to their favorite business of the day credit card loans and outrageous interest rates when they got after your credit with others banking systems or credit card loans mishaps.

I never like their business and now I am going to be stuck with them as our lenders.

I wouldn't be surprised to learn that this deal had less to do with Countrywide and BOA and more to do with the Fed. The fed couldn'tt allow CW to crash so they engineered the buy-out and the only player big enough (and not in trouble themselves read: CitiCorp) was BOA. No financial player would make this kind of deal now. Not without outside pressure and inducements.

Originally posted by marg6043
Now Bank of America a financial institution that the reason it wasn't hit with the mortgage write outs is because they were not heavily into mortgages

Actually they did get into mortgages for a few years, as usual though they saw what was coming, backed out, and started offshoring most of their post closing to India. Even when they were generating a lot of loans during the boom, they were turning around and selling over half of them, washing their hands of servicing.

Whatever the case, they always seem to be ahead of the curve.

Wait a moment Citicorp is bearing the down fall of citigroup they are all under the same group, tricky indeed. 1998 Travelers Group and Citicorp merge to form Citigroup Inc., a global leader in financial services.

It was either a bail out that didn't work, next it was banckrupcy for Countrywide so Bank of America was there to take the pieces.

Tomorrow all eyes will be on Merrill Lynch as they will be exposing their write outs for the first time.

But they are very good they already received a $6.6-billion investment from Singapore's Temasek Holdings Pte. This is to allivieate the their fall.

Remember when Saudi Arabia, Kuwait and Dubai infused the Citigroup throught Citicorp last year but they just let their Citigroup do the fall out while Citicorp looks like it doing just fine.

reply to post by phoenixhasrisin


I think that the buying out seems like a good idea but the morgage woes are to linger longer than expected and they will be hit with those woes also eventually.

Yeah true, how bad though depends on whether or not we see a bail out, or something grapes of wrath suburban style.

Who knows though, maybe BofA will turn around and sell their newly repossessed houses to all the illegals that they're giving credit to

Yes I imagine that they may have some plans for the houses that already have depreciated after foreclosure.

My husband is looking for refinancing right now taking advantage of the low interest rates but we want to get away from Bank of America, we have a secure loan so it will be no problem getting another mortgage company to deal with us.

I don't like Bank of America and I will hate having them as our mortgagors.

dailybriefing.blogs.fortune.cnn.com...

Mozilo (Countrywide exec) looks like another Enron exec. From the story above he sold off 100 million in the last year, gets 115 million bonus and gets paid triple salary plus bonuses with company airtravel etc.

Of particular interest, read some of the former employees responses in that blog. A streetgang runs a tighter ship than these guys by the sounds of it.

phoenixhasrisin, any links on them loans to illegals?