Thursday, January 17, 2008
CountryWide Being Bought
With 7% of its lenders in default and after spending $13billion of its own money to salvage its bottom-line, CountryWide Financial is being bought by Bank of America for $4.1billion in stock. I guess I should have seen this coming when BoA tossed $1billion to help CountryWide out. In hindsight it was BoA sticking its nose in CountryWide’s tent to see what was in it. And it looks like BoA liked what it saw even with a pesky Texas contract that obligates CountryWide, or whomever buys Countrywide, to create jobs in Texas or face finiancial punishment. The merger should be accomplished by the third-quarter and if you call CountryWide, like I did to see when I will receive my 1098, the pre-recorded messages already talks about a seamless merging of the two. I just hope the new company is better at handling natural disasters like Katrina than CountryWide was with me.