posted on Nov, 3 2012 @ 10:08 AM
Hold on, folks. Let's be crystal clear here.
Countrywide Mortgage was the perpetrator of the mortgage fraud. When Bank of America took over Countrywide, yes, some of these practices by
Countrywide employees would have continued for a short time, but Bank of America -- once they took over -- promptly stopped these practices.
Countrywide is to blame. Bank of America had the unfortunate task of being blackmailed into purchasing Countrywide as a national financial emergency
unfolded during the 2008-2009 financial crisis. They have had the unfortunate task of cleaning up the toxic mortgage mess left behind by Countrywide,
losing upwards of $30 billion for settling lawsuits stemming directly from Countrywide's past actions.
So, please, give credit where credit is due. Bank of America is not the problem. Countrywide was the perpetrator of these bogus toxic mortgages, and
Bank of America is simply the maintenance and janitorial crew that gets to pick through all the dirty trash, garbage, and bottles after the party is
over. Worse yet, Bank of America gets blamed by the press --- and sued by the government -- in the process.
It's a huge fiasco. No other bank was large enough to try to take on the Countrywide mess. Chase might have been the only other bank that had the
breadth and number of employees to manage the unwinding of Countrywide. Bank of America has taken these losses from Countrywide on the chin, and been
labelled in the press as the bad guy.
Meanwhile, Mozillo, Countrywide's prior CEO, was not prosecuted. No jail time.
Personally, given the timing of the lawsuit, I believe this is a political stunt just before the election. The feds could have brought this lawsuit
years ago. They want to show they are "tough" on the banks before the election, and the scapegoat and whipping boy right now is Bank of America.