When was countrywide acquired by bank of america

Bank of America alone ranks fifth, the Inside Mortgage Finance newsletter said. It was not clear how many jobs might be lost. Countrywide, based in Calabasas, California, ended December with 50, employees after eliminating about 11, jobs in the previous five months. Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee, called on Mozilo to donate some pay to nonprofit groups trying to help subprime borrowers avoid default. Not everyone likes the timing of the merger.

Lewis said he planned to meet with Mozilo next week. He had planned to retire in December Trust Co. The result of all the dealmaking is a widely diversified financial services company that does business with nearly one out of every two American households. In the past year, Bank of America has boosted its market share of prime mortgages, or those offered to borrowers with a solid credit history, and was the top retail mortgage originator in the U. Mortgages will continue to be an important relationship product, and we now will have an opportunity to better serve our customers and to enhance future profitability.

While there are some regulator hurdles to close the deal, they are hardly insurmountable. The buyout would require approval from the Federal Reserve, and possibly other agencies, but analysts believe regulators are more concerned about a Countrywide collapse than industry consolidation. Federal law also bars banks from acquisitions that would increase market share above 10 percent of U.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by decreasing interest rates and shedding deposits. IE 11 is not supported. Since, the decision has proven to be costly. The legal losses have been so costly that BofA was reportedly considering putting Countrywide up for bankruptcy last year.

The bank would be able to put just the Countrywide unit up for bankruptcy because BofA maintained it as a separate legal entity during the acquisition. News U. Politics Joe Biden Congress Extremism.