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B of A buys Countrywide for $4B; We have a responsive, proactive economy
Topic Started: Jan 11 2008, 05:04 AM (83 Views)
Mikhailoh
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If you want trouble, find yourself a redhead
What do you think? I think we have a smart, proactive financial community. Of course they also had $2B in them already. ^_^

http://www.nytimes.com/aponline/us/AP-Coun...&hp&oref=slogin


Bank Agrees to Buy Troubled Loan Giant for $4 Billion

By THE ASSOCIATED PRESS
Published: January 11, 2008
Filed at 7:19 a.m. ET

CHARLOTTE, N.C. (AP) -- Bank of America Corp. said Friday it has agreed to buy Countrywide Financial for $4 billion in stock, a deal that both rescues the country's largest mortgage lender and expands the financial services empire of the nation's largest consumer bank.

The buyout will make Charlotte-based Bank of America the nation's largest mortgage lender and loan servicer.

''Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation's premier lender to consumers,'' Bank of America chief executive Ken Lewis said in a statement.

The acquisition come less than five months after Bank of America plugged $2 billion in Countrywide Financial Corp. during the height of the summer's global credit crunch, and just weeks after Ken Lewis vowed that making a deal in the mortgage industry would require him ''to eat about seven years of my words.''

It also places Lewis, an aggressive dealmaker, in the position of a market savior. By buying Countrywide, he's keeping the industry and regulators from the messy task of figuring out who would take on the responsibility of collecting payments for the millions of U.S. home loans serviced by the Calabasas, Calif.-based lender.

''There's still plenty of risk involved,'' said Bart Narter, senior analyst at Celent, a Boston-based financial research and consulting firm. ''He's brave to do it. But I think that it's very likely down the road to be profitable, maybe not immediately, but long-term.''

Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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jon-nyc
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Cheers
A great deal for the long term, IMO.


Bank stocks are soooo cheap right now.
In my defense, I was left unsupervised.
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Axtremus
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HOLY CARP!!!
I am very glad to see BoA scooping up CFC.

Just regret that I didn't buy CFC stock when it was in the $4-something range. I was really, really tempted, but failed to pull the trigger anyway. :shrug:
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Mikhailoh
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If you want trouble, find yourself a redhead
jon-nyc
Jan 11 2008, 09:20 AM
A great deal for the long term, IMO.


Bank stocks are soooo cheap right now.

Yeah, I know. I have a chunk of Huntington - great dividend reinvestment program - but it's now down to 13 something from 23. Good thing it is for Lauren's college! Might buy some more.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Frank_W
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Resident Misanthrope
Heck, they coulda' bought a TON of these!!!
Anatomy Prof: "The human body has about 20 sq. meters of skin."
Me: "Man, that's a lot of lampshades!"
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Mikhailoh
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If you want trouble, find yourself a redhead
Y'know - we may laugh, but that is a veritable palace compared to what probably 99.9% of human beings have lived in since we began.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Frank_W
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Resident Misanthrope
No, I'm serious. For one-sixth the price of what I paid for my Jeep, I would so totally have bought that place. They aren't as bad as everyone makes them out to be, especially if you anchor them correctly, make sure the floor joists are solid, and take the time to landscape and stuff. For one or two people, they are quite comfortable.
Anatomy Prof: "The human body has about 20 sq. meters of skin."
Me: "Man, that's a lot of lampshades!"
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Mikhailoh
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If you want trouble, find yourself a redhead
I had a girlfriend with one once. It was a nice place, actually. Very comfortable. Doublewides are even nicer.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Frank_W
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Resident Misanthrope
They aren't the Playboy Mansion, but what the hell: They're warm, cheap to heat and cool, and you can add a cabana onto them, or make them a double, and have money left over to build a kick-ass shop in the back for woodworking or working on Jeeps. :thumb:
Anatomy Prof: "The human body has about 20 sq. meters of skin."
Me: "Man, that's a lot of lampshades!"
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Mikhailoh
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If you want trouble, find yourself a redhead
They'd seem like a palace if you were living in your car. Relative situations are important.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Frank_W
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Resident Misanthrope
That too. :thumb: ;)
Anatomy Prof: "The human body has about 20 sq. meters of skin."
Me: "Man, that's a lot of lampshades!"
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