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Bank Of America Wins (Unofficial) Deal-Making Award For Remarkable Achievement

Remember when Bank of America bought Countrywide in 2008 and CFC Chief Executive Officer/Oracle Angelo Mozilo said they wouldn’t be sorry and it wouldn’t be long before BofA would “reap what Countrywide hath sowed“? He wasn’t kidding and now, finally, BAC and Ken Lewis, the guy who had the foresight to do the deal, are having their vision and skills recognized.

Bank of America thought it had a bargain four years ago when it paid $2.5 billion for tottering mortgage lender Countrywide Financial Corp. But the ill-fated decision has already cost the Charlotte, N.C., lender more than $40 billion in real-estate losses, legal expenses and settlements with state and federal agencies, according to people close to the bank. “It is the worst deal in the history of American finance,” said Tony Plath, a banking and finance professor at the University of North Carolina at Charlotte. “Hands down.”

Bank Of America’s $40 Billion Mistake [WSJ]

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47 Responses to “Bank Of America Wins (Unofficial) Deal-Making Award For Remarkable Achievement”

  1. Don Henley, CFA says:

    Some dance to remember, some dance to forget.

    Looks like Ken will be going with option #2 tonight?

  2. HungryIntern says:

    Worst deal ever? I am not sure about that…

    ~Solomon Brothers

  3. Strong Sell says:

    Yea seriously – what a shitty deal. Who would do something so stupid?

    – Richard Parsons

  4. PermaGuestII says:

    What do you mean- it sounds great!

    -PennCentral

  5. B. Iksil says:

    $37.5B loss? Interesting…

  6. Golden Wreck says:

    Hey don't forget about us.

    Ken Thompson and Marion Sandler

  7. Guest says:

    Don't forget about all we've managed to accomplish together since 1998.

    – Union Bank of Switzerland & Swiss Bank

  8. Guest! says:

    Whew! Glad he said "American" finance.

    Freddy G.

  9. Guest says:

    I'd like to hear what Dick Bove has to say about this.

  10. structured prods says:

    Well now, you ain't seen nothin' yet.

    – Ben S. Bernanke

  11. MHA says:

    Mr. Welch, it's Kidder Peabody on the line for you.

  12. NakedShort says:

    Another shitty deal for me to look at!

    -C. "No Relation" Levin

  13. ted turner says:

    uh, hello?

  14. Guest says:

    Worst deal ever? What about buying a steaming pile of option arms at the peak of the housing bubble, driving the 4th largest US bank and 11th largest globally into insolvency (and into the hands of a hick from Minnetonka)?

    -guy who overheard Ken Thompson complain about all the WB short sellers

  15. Jamie D says:

    Your telling me At $118.00 a piece I could have bought 360,169,491 National Panthems from Bonobos instead of Countrywide?

  16. Major Award says:

    [youtube OMGnRayA_U8 http://www.youtube.com/watch?v=OMGnRayA_U8 youtube]

  17. Matt's brother says:

    1/15/08 Businessweek interview w/ Kenny about the Countrywide acquisition: http://www.businessweek.com/stories/2008-01-15/a-

    There is some epic BS in there including "if you look at our projections, in the third full year of ownership, 2011, we think we should be making $2billion aftertax"

    • Ghost of Countrywide says:

      Current projections for the CW legal liabilities are in the $50 billion range and still growing….definitely will kick Kenny in the nuts if I have the good fortune to bump into him.

      -bitter ML guy

      • guest says:

        well, you could have stayed independent. and by "stayed independent" of course I mean "watched ML stock go to zero and file for bankruptcy."

      • guest says:

        this will be after you run into and kick the nuts of stan o'neal and everyone else on ML's executive committee and board, who are the reason countrywide is your problem to begin with, right?

        • JOmomma says:

          If you'd replaced names with buzzwords like 'executive compensation', you'd have been branded an ows tool. Apparently this is personal and business. Interesting

          – OPCO rhetoric group head

  18. 2005-2007 PE LPs says:

    as owners of TXU and a host of other now underwater PE assets, we'll just see about that.

  19. N8lGNc Wow, great article post.Really looking forward to read more. Cool.

  20. finance says:

    Tony Plath is a brave man and have the capability to analyze things on better stages.