Friday, June 29, 2012

Bank of America's $40 Billion Screw Up



Bank of America Corp. thought it had a bargain four years ago when it paid $2.5 billion for tottering mortgage lender Countrywide Financial Corp. But the ill-fated decision has already cost the Charlotte, N.C., lender more than $40 billion in real-estate losses, legal expenses and settlements with state and federal agencies, people close to the bank told WSJ.

"It is the worst deal in the history of American finance," said Tony Plath, a banking and finance professor at the University of North Carolina at Charlotte. "Hands down."

The acquisition of Countrywide, which was completed almost exactly four years ago, turned ...


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