Bank Of America Briefly Considered Unburdening Itself Of The Drunken Mistake That Was Countrywide

And then decided that sticking with the “worst deal in the history of American finance,” which has cost it $40 billion in cleanup so far, made them at least look like responsible adults, facing the consequences of their actions, rather than deadbeats trying to take the easy way out.

Long before Sanford Weill suggested last week that big banks should split up, Bank of America executives and directors considered the idea and then decided against it, said people close to the nation’s second-biggest bank by assets…Chief Executive Brian Moynihan and his team looked at a possible bankruptcy of Countrywide Financial Corp., the troubled mortgage operation it purchased in 2008. Management also studied whether it made sense to break off Merrill Lynch, the securities firm it purchased in 2009. Mr. Moynihan ultimately recommended to his board that neither action made sense. The company decided Merrill had become too big of a profit center and splitting it off could expose the brokerage firm to the sort of funding problems that killed off other Wall Street firms in 2008. Meanwhile, it felt bankruptcy of Countrywide might invite more legal and reputational troubles for Bank of America while exposing other subsidiaries to problems.

Bank Breakups, Not So Fast [WSJ]

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34 Responses to “Bank Of America Briefly Considered Unburdening Itself Of The Drunken Mistake That Was Countrywide”

  1. Alt_EST says:

    Greater Boston Chamber of Commerce? What is that, like representatives from 450 different Dunkin' Donuts?

  2. SellingLow says:

    Guarantee that half that Chamber of Commerce is nicknamed "Sully."

  3. Fahk says:

    Waht the fahk is this fahk?

  4. UBS MD says:

    Tell us more about this "profit center" concept.

  5. investorcluzo says:

    "might invite more legal and reputational troubles for Bank of America"
    -wait, reputation?

  6. Guest says:

    Is that rumor about chicks in Boston still true?

  7. Guest says:

    Angelo Mozilo needs to merge with Sanford Weill to create the most grossly discolored human being alive today.

  8. Mighty Taco says:

    Moynihan looks like he spends a good portion of his day taking nervous dumps.

  9. Guest says:

    Ken Lewis was a hero standing up for the average joe by attaching the epic fail that was Countrywide to a series of other profitable businesses.

    -OWS who got a principal modification on a mortgage he never should have qualified for in the first place.

    • TitleZ says:

      It's one giant CF. Bailouts for creditors and bailouts for borrowers, both. Are there any good examples of true accountability in finance today?

  10. The 1% says:

    Ken Lewis Sucks……….

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  18. I think Bank of America should try to be cautious next time. They should not buy anything blindly with just partly chances of being a good deal for the future. These risks, if proven, can create a mega downfall to the economy of the United States. They should be a little more careful next time.

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