Bank of America announced this morning that they plan to purchase Countrywide for $4b in the third quarter of 2008. It will be a stock buyout. It’s highly speculated as to why BOA would choose to take on the troubled mortgage corporation. Some speculate they are doing so for the loan servicing software, and some speculate they are doing so to “save face” after their $2b bail out of the company earlier this year. Bank of America has announced plans to shut down Countrywide’s failing sub-prime department.
Bank of America Announces $4b Buyout of Countrywide
Jan 11th, 2008 7:00:00am +0000
I think these are only speculations!
Didn’t BOA close down their Alt A and B & C departments this past year? History repeats itself, I guess.
Agree with Dana–I’m not sure that this information is all 100% accurate.
http://money.cnn.com/2008/01/23/news/companies/boyd_bank.fortune/?postversion=2008012313
It may be a good for BOA. Just like any other market, the serious competitors are expanding when times are tough, so their poised to strike hard when the market comes back.
I think that BOA got a steal when they picked up Countrywide. But, I guess we will have to wait and see. It is just to bad that I didn’t buy up a bunch of shares like I was thinking of right after BOA announced the completion of the deal. Stock shot back up 50% in only a couple of weeks. Oh well, there is always next time.
Good luck to everybody.
James
B of A may be getting a run on the bank!
http://bankimplode.com/blog/2008/08/14/bank-of-america/
http://www.marketwatch.com/news/story/fbi-probes-countrywide-possible-securities/story.aspx?guid=%7B4145FC3B-8CBC-4030-A8A8-FEE8B2C879F7%7D
Liar loans could bring the bank to the brink of…………….