The 2008
acquisition of Calabasas-based Countrywide seemed like a bargain at $2.5
billion, but when you add up real-estate losses, legal expenses, and
settlements with state and federal agencies, the real price is closer to $40
billion, the WSJ
reports, citing sources close to the bank And that doesn't include a 68 percent
drop in the value of B of A stock. "It is the worst deal in the history of
American finance," said University of North Carolina banking professor
Tony Plath. From the Journal:
Bank officials say they finally
have their arms around the many problems spawned by Countrywide and that it won't
get much worse. Indeed, hopes that the worst is behind it on Countrywide and
other fronts has propelled Bank of America's shares to a gain of more than 40%
this year, making it the best-performing stock in the Dow Jones Industrial
Average...
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