Hi, BofA shareholders, I'd like you to meet Angelo and his corrupt posse at Countrywide Toxic Mortgage - your problem now!
Every state in the US has either filed a lawsuit against your new friends or is preparing to do so. The civil and criminal lawsuits will take years and years to sort out. You'll end up losing billions and billions more on this deal, and the Countrywide brand you bought is probably more worthless than Enron at this point.
But what the hey, a deal's a deal, and you own 'em now.
And BofA CEO Ken Lewis, who might not last the summer, is now a strong nominee for "Stupidest CEO in the World". He may think he can pawn off Countrywide's mess on the taxpayers, and thanks to Angelo's bribery he may well do that, but he won't be able to stop the lawsuits. No, he won't be able to stop the lawsuits.
Bank of America completes buy of Countrywide
Bank of America Corp. has completed its acquisition of mortgage lender Countrywide Financial Corp., making BofA the country's largest mortgage lender.
Under the agreement, Countrywide shareholders received 0.1822 share of Bank of America stock in exchange for each share of Calabasas, Calif.-based Countrywide (NYSE: CFC).
When the deal was announced Jan. 11, it was valued at around $4 billion. However, Bank of America's stock price has since declined from $38.50 per share to Monday's closing price of $23.87 per share. Based on that drop, Bank of America paid about $2.5 billion for Countrywide.
Last week, Charlotte, N.C.-based Bank of America (NYSE: BAC) announced it would cut 7,500 jobs as part of its acquisition of Countrywide.