June 29, 2009: Countrywide Chairman and CEO Angelo Mozilo utters greatest veiled threat ever when he tells CFC shareholders at their final meeting that Bank of America “will reap the benefits of what we have sowed.”
October 25, 2012: Analysts estimate the benefits of acquiring Countrywide have so far cost Bank of America $40+ billion in “write-downs, legal expenses, and settlements.”
October 8, 2013: Still reaping:
Already saddled with mounting regulatory scrutiny, Bank of America Corp. may see what looked like a closed case reopened as an objection filed by the U.S. government could derail a proposed $500 million settlement the lender struck earlier this year over allegedly defective mortgages. Late Monday, the Federal Deposit Insurance Corporation filed an objection against the settlement Bank of America announced in April regarding allegations it sold billions of dollars of securities backed by defective mortgage loans originated by Countrywide, which Bank of America purchased in 2008. The plaintiffs said that by late 2008, virtually all of those certificates were downgraded to junk-bond status.
Countrywide in November 2007 had been sued by several pension funds involved in the case. Other pension firms were later added to the case, including the Maine State Retirement System in January 2010. Bank of America had said that the settlement—which is subject to court approval—would resolve 80% of all the claims filed against Countrywide mortgage-backed securities alleging securities-disclosure issues, and 70% of the claims filed against Bank of America-created loans over such issues.