Looking Back Toward Bank From America’s Nationwide Fiasco
5 years back Saturday, Bank off America revealed it was buying one of one’s country’s premier mortgage lenders. Financial authorities believe the offer to shop for Countrywide Monetary create cement Selection of America’s place near the top of the economic banking team. However it didn’t churn out this way.
5 years ago now, Lender regarding America established it had been buying the stressed subprime mortgage lender Countrywide Economic to possess $forty billion. At that time, the new economic crisis hadn’t completely revealed itself, and lots of individuals consider Lender of America are getting a great price. Instead, the purchase features became a never ever-finish judge and you will economic horror. NPR’s Jim Zarroli records.
JIM ZARROLI, BYLINE: It’s not hard to find people who will say to you one to Bank regarding America’s is in other words the new poor package regarding the reputation of the brand new economic functions business.
PLATH: At that time, the strategy generated feel. The purchase price produced experience. The situation was it is precisely the incorrect purchase on correctly unsuitable date.
ZARROLI: When the bargain happened, Bank regarding America, under its President Ken Lewis, was increasing timely, primarily because of acquisitions. Read more
