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August 11, 2011

For Bank of America, Countrywide Bankruptcy Is Still an Option

"The real issue around Bank of America is not whether it survives, but whether it sacrifices Countrywide to save itself. More specifically, will Bank of America put Countrywide into bankruptcy? And will this stem the bleeding?

The Countrywide acquisition will go down in history as a deal from hell. It has already cost Bank of America tens of billions of dollars in litigation settlements, let alone losses resulting in a $20.6 billion charge to earnings in the second quarter. Bank of America has already announced that it expects another $5 billion charge for earnings, and American International Group said this week that it would sue Bank of America for $10 billion, mostly for loans issued by Countrywide. It appears that $5 billion is the floor."

Read the article here.

August 11, 2011 in Current Affairs | Permalink


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wheww $20B, unreal

Posted by: Jessica D. | Aug 11, 2011 12:29:06 PM

The acquisition of Countrywide vested Bank of America with immunity for both past and future criminality, as an inherent part of the deal...
We live in a Robber Baron Revival Era!

Joseph Zernik, PhD
Human Rights Alert (NGO)
[1] 10-05-05 Countrywide, Bank of America [NYSE;BAC], and its President Brian Moynihan Compilation of Records Evidence of Racketeering
[2] 10-05-05 Chairs of US Congress Committees of the Judiciary and Banking Are Requested to Join Senator Feinstein’s Inquiries on Comptroller of the Currency
[3] 10-07-06 Complaint Filed with US Attorney Office Los Angeles Against Moynihan Bank of America [NYSE:BAC] Bryan Cave LLP Alleging Racketeering
[4] 10-07-06 Complaint Filed with US Attorney Office, Los Angeles, Against Brian Moynihan, Bank of America [NYSE:BAC], Bryan Cave LLP, Alleging Racketeering and Large Scale Financial Institution Fraud
[5] 10-04-19 Human Rights Alert (NG0) submission to the United Nations Human Rights Council for the 2010 Review (UPR) of Human Rights in the United States as incorporated into the UPR staff report, with reference to “corruption of the courts and the legal profession”.

Posted by: Joseph Zernik | Aug 23, 2011 10:56:30 AM

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