• News

    Bonus Watch ’14: Countrywide Whistleblowers

    The total payouts to whistle-blowers in the federal government’s $16.65 billion settlement with Bank of America over its mortgage business may approach $170 million. Edward O’Donnell, a former executive at Countrywide Financial, and Robert Madsen, a former property appraiser for the bank already have been identified as two of the whistle-blowers that federal prosecutors gave […]

    / Dec 19, 2014 at 3:53 PM
  • "Forget it, I quit, I can't do this anymore, man. My head's about to explode. My whole life sucks! I don't know what I'm doing, I don't know where I'm going. My dad just died, we just killed Bambi, I'm out here getting my ass kicked and every time I drive down the road I wanna jerk the wheel into a Goddamn bridge abutment!"

    swing and a miss

    Bank Of America’s Attempt To Get Out Of 99th Billion Dollar Fine Probably Unsuccessful

    Over the last several years, Bank of America has paid something like $827 billion in fines and settlements, including $16.65 billion just last month. So while another billion here or there would represent but a drop in the bucket, you can sort of understand why Moynihan et al would be done, emotionally, cutting these checks […]

    / Sep 19, 2014 at 1:34 PM
  • Angelo_Mozilo


    Angelo Mozilo Has No Idea Why People Still Want To Talk About Countrywide, He’s Yet To Be Inducted Into The CEO Hall Of Fame

    In June 2008, at the last Countrywide shareholder meeting after the company had been bought by Bank of America, founder Angelo Mozilo made a bold statement, telling those assembled, “[Bank of America] will reap the benefits of what we have sowed.” While one might quibble over the definition of the word “benefit,” the bank was […]

    / Sep 2, 2014 at 12:52 PM
  • Banks

    Brian Moynihan Can Make His Mortgage-Bond Nightmare Go Away

    All it will take is an extra $13 billion-plus, on top of the $9.5 billion BofA coughed up last month, part of the $50 billion or so BriMoy has paid out to deal with the albatross that was the Cadillac of mortgage lenders.

    / Apr 25, 2014 at 4:20 PM
  • Banks

    Countrywide Dances To Its Own Grave

    Painting a mental portrait of 200 Countrywide employees doing the Hustle did nothing to convince jurors that the eponymous mortgage program was not just a big plot to rip Fannie Mae and Freddie Mac off.

    / Oct 24, 2013 at 4:33 PM
  • Banks

    Countrywide’s Hustle Program Only Sounded Bad

    From the name on down to the “On-Fire February” contests to fund the most loans during the shortest month, maybe the Cadillac of mortgage lenders could have done a better job of branding. And it was all in good fun, Rebecca Mairone assures, and at no time were they just handing out mortgages willy-nilly.

    / Oct 17, 2013 at 2:53 PM
  • Angelo_Mozilo


    Bank of America Continuing To Reap What Country Wide Hath Sowed

    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 […]

    / Oct 8, 2013 at 4:40 PM
  • Sorry which RMBS fraud case was this again?


    Bear Stearns RMBS Ruling Good News For Banks, Except Maybe Bank Of America

    A while back Bear Stearns sold some mortgage-backed securities to a thing called FSAM, which was basically a subsidiary of Franco-Belgian monstrosité Dexia, and FSAM sold the RMBS on to Dexia, and the mortgages were all terrible, and their value dropped, and Dexia sued JPMorgan, currently the proud owner of Bear Stearns, and today JPMorgan […]

    / Apr 3, 2013 at 6:21 PM
  • He should sue. Wait.


    AIG Is Even More Not Owned By The Government

    AIG is in the news today for two very small numbers in connection with much larger numbers. First: AIG is no longer bailed out! I know, you thought that happened like six months ago, and then again three months ago, but today AIG got rid of the last little bits of government ownership, really this […]

    / Mar 1, 2013 at 5:04 PM
  • brianmoynihanbofa2


    Brian Moynihan May Have Kinda-Sorta Kept Running Countrywide Like Angelo Mozilo

    Countrywide is both an albatross and a boon for Brian Moynihan. Sure, it’s the reason for all of Bank of America’s troubles, but it’s also really convenient to have such a reason.

    / Feb 4, 2013 at 3:08 PM
  • I see what you did there


    AIG Pretended It Might Sue The Government To Distract Attention From Its Actually Suing The Government

    There’s a lot to choose from but I’m going to say that the very best thing about AIG’s pretending it might sue the government last week, and then not doing it, is that then it actually sued the government: American International Group Inc. filed a lawsuit against a Federal Reserve vehicle created during AIG’s bailout […]

    / Jan 14, 2013 at 10:25 AM
  • angelo_mozilo

  • angelo_mozilo


    Angelo Mozilo: Countrywide Was The Cadillac Of Mortgage Lenders

    In June 2008, Countrywide founder and CEO Angelo Mozilo stood before a group of CFC shareholders and, through salty tears, told them that Bank of America would “reap the benefits of what we have sowed.” He wasn’t kidding, and in the 4+ years since Ken Lewis paid $4 billion for the place, BofA has had the pleasure of ponying up an additional $40 billion (and counting) in write-downs and legal fees associated with cleaning up Countrywide’s messes, while CEO Brian Moynihan has publicly described the acquisition as an albatross around his neck. Additionally, Ang Moz forked over $67.5 million in 2010 to “resolve SEC claims that he misled investors,” and separately, there has been talk by some that Countrywide contributed in no small way to the worst financial crisis since the Great Depression. In light of all that, does Ang Moz, have any regrets about the way his company was run? Not a fucking one and if he had to do it all over? He wouldn’t change a thing.

    / Dec 13, 2012 at 12:48 PM
  • Also may be unfair to blame Google Docs; my skills have atrophied.


    You Fight With Bank Of America Over Bad Mortgages, Bank Of America Fights Back

    Was there mortgage-related misbehavior at Bank of America and its various after-acquired subsidiaries? I wasn’t there, but on public information, I mean, sure, why not. Some days it looks like there was mortgage fraud everywhere. But whereas everyone else is all “sorry about the mortgage fraud” and “here is a large settlement,” BofA is not […]

    / Nov 13, 2012 at 5:51 PM
  • brianmoynihanbofa


    Are You A Financial Services Company Stuffed To Gills With Toxic Assets And/Or On The Verge Of Bankruptcy? Don’t Hold Your Breath For Brian Moynihan’s Call

    Time was, Bank of America loved buying companies. Bonus points if there was a not-so-subtle suggestion by the target’s CEO that BofA would one day be very sorry for doing so, or that they would’ve been better off picking up an asbestos manufacturer, or that they were looking at roughly $40 billion (and counting) in legal fees associated with fuck-ups that were to become Bank of America’s problem, or that they would have night terrors for the rest of their lives about signing those papers. As it’s been a while since BofA went shopping, some in the financial services industry have been wondering if we can expect any announcements re: big deals anytime soon or if Ken Lewis’s unsolicited suggestions (Groupon, Sino Forest, The Thirsty Beaver, and most recently: “a P&C insurer with outsized exposure to the Northeast”) are or have ever been under consideration?

    Sadly for fans of the Lewis Era/style of doing business, not so much.

    Mr. Moynihan said in response to an audience question [at the bank’s two-day investor presentation conference for financial companies at the Plaza hotel] that the bank has “no acquisition plan at all.”

    BofA’s Moynihan Says Fiscal Cliff Impact Already Happening [WSJ]

    / Nov 13, 2012 at 12:40 PM
  • Guys: Windows Paint. Do not want.

    Banks, News

    Bank Of America’s Countrywide Acquisition Gets 2.5% Worse

    Bank of America bought Countrywide Financial in 2008 and it’s fair to say that went poorly; the Wall Street Journal totted up total Countrywide losses at about $40 billion but that was in July so they’re probably, like, $80 billion by now. If you were trying to figure out the maximum past and future losses […]

    / Oct 24, 2012 at 2:28 PM
  • News

    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]

    / Jul 30, 2012 at 2:35 PM
  • News

    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]

    / Jun 29, 2012 at 1:53 PM
  • News

    Whistleblowing Bank Of America Quite A Bit More Lucrative Than Working For Bank Of America

    Just something to keep in mind.

    A former Countrywide Financial Corp. manager whose fraud suit contributed to the mortgage industry’s $25 billion settlement with federal and state regulators received about $14.5 million for his efforts, his lawyers said. Kyle Lagow, an appraisal manager for Countrywide from 2004 to 2008, claimed that Countrywide inflated the value of homes to support bigger loans, according to a statement today from Seattle-based law firm Hagens Berman. Charlotte, North Carolina- based Bank of America bought Countrywide in 2008 to save it from collapse as defaults on home loans soared. Lagow’s information helped prompt a $1 billion settlement of Federal Housing Administration claims announced by Bank of America in February, according to the law firm. The sum was included in the nationwide settlement reached that month.


    / May 29, 2012 at 6:22 PM
  • News

    Countrywide Might Have Been Better Off Herding Goats

    While we were out some people who keep to a less rigorous vacation schedule than we do wrote some stuff about complexity in finance. Lisa Pollack at FT Alphaville started the ball rolling by attributing increasing complexity in finance to increasing smartness in the financial industry. This is a delightful theory if you are or […]

    / Jan 3, 2012 at 6:33 PM
  • News

    Bank Of America Still “Reaping The Benefits Of What Countrywide Hath Sowed”

    Remember, back in ’08, when Angelo Mozilo cried while telling a bunch of Countrywide shareholders that Bank of America, which had just bought the place, would “reap the benefits of what we have sowed“? Obviously that was was Moz-Speak for “you’re about to find out what it’s like to be forcibly sodomized for all eternity,” […]

    / Dec 21, 2011 at 3:46 PM
  • News

    Reporter Charlie Gasparino Has An ‘Educated Guess’ About The BofA WikiLeaks

    First off, Chaz knows a guy who saw the documents in question. Unfortunately, this character had no idea what anything in there meant. …one source who claims to have read some of the documents held by WikiLeaks confirms that they do in fact involve Bank of America. Adding to the mystery, however, this source says […]

    / Dec 6, 2010 at 11:16 AM
  • News

    Bank Of America “Robo-Signer” On His Craft

    “I had no idea what I was signing,” Tam Doan says of his work for Bank of America’s pre-sale foreclosure department in Southern California. “Either you were in or you were out.” Unlike his job at Countrywide, which he described as orderly, Doan said Bank of America’s foreclosure operations were chaotic and stressful. There weren’t […]

    / Oct 28, 2010 at 12:14 PM
  • News

    Who Wants To Sue Bank Of America?

    So far those on Team “I’m here for the gang bang” include PIMCO, BlackRock, MetLife, TCW Group and the NY Fed but there is always room for one more. Surely someone else out there is feeling incensed about some stuff that went down at Countrywide and is looking to take action. In related news, I […]

    / Oct 19, 2010 at 3:15 PM
  • News

    How Much Is Angelo Mozilo’s Settlement Costing Him?

    “The former Countrywide Financial Corp. chief agreed Friday to a settlement that requires him to pay 16 cents out of his own pocket for every dollar federal authorities claimed he had taken out of the company in ill-gotten personal gains.” [HP]

    / Oct 18, 2010 at 10:00 AM
  • News

    Angelo Mozilo To Pay SEC $67.5 Million For Pesky Little Fraud Charges To Go Away

    As part of the settlement, the regulator agreed to allow the Countrywide founder to drop the money in small denominations from his private jet, over a cattle ranch in Montana, where SEC staffers will have 30 minutes to scurry around picking up every ever last bill,** en route to a much needed visit to Fresno, […]

    / Oct 15, 2010 at 2:20 PM
  • News

    MBIA Fraud Suit Against Countrywide to Proceed

    MBIA, the mortgage insurer that decided to back all those subprime securities underwritten by Countrywide and others, will now have its day in court. A judge ruled earlier this week that MBIA can proceed with its fraud claim against Countrywide (now Bank of America.) The insurer claims Countrywide lied when it told MBIA the mortgages […]

    / Apr 30, 2010 at 5:51 PM

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