Bank Of America Still "Reaping The Benefits Of What Countrywide Hath Sowed"

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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," but at the time, some people wanted to give him the benefit of the doubt. Maybe he was leaving some neat stuff behind, like buried treasure or something. We now know that, actually, one of the things that the home lender had been "sowing" for a number of years was the basis of a Department of Justice investigation into the fact that the company made it a policy to dick over Hispanic and black people, one of the many gifts Brian Moynihan has been unwrapping since he took over.

Bank of America agreed to a record $335 million settlement of a U.S. Justice Department probe into fair-lending lapses at its Countrywide Financial Corp. mortgage unit. Countrywide discriminated from 2004 to 2008 by charging higher fees and interest rates to more than 200,000 black and Hispanic borrowers and steered minority borrowers into subprime mortgages, the DOJ said in a statement today. The accord is tied to an investigation into mortgages made by Countrywide, acquired in 2008 by Charlotte, North Carolina- based Bank of America. The second-biggest U.S. bank by deposits has spent billions of dollars to clean up liabilities inherited from Countrywide, which once ranked as the nation’s biggest home lender. Bank of America has committed about $40 billion for mortgage refunds, lawsuits and foreclosures since 2007, with most of the sum tied to alleged defects in the loans that affected investors, rather than discrimination against customers.

“We reached this settlement to resolve issues about Countrywide’s alleged historic practices that occurred before Bank of America acquired the company,” said Dan Frahm, a company spokesman. “We are committed to fair and equal treatment of all our customers, and will continue to focus on doing what’s right for our customers, clients and communities. We discontinued Countrywide products and practices that were not in keeping with our commitment.”

Now that that's taken care, what else have we got on the list? The mortgage and foreclosure stuff, obviously, but there are probably a half a dozen or so other Moz items that need dealing with, no? Surely there must some love children Brian needs to make go away? This can't be all there is.

BofA Agrees to $335M Lending Settlement [Bloomberg]
Related: “When he tans Angelo gets really dark. My mother told me that when he worked in Florida he was asked to sit in the back of the bus.”

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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]

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.

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]