Bank of America to Buy Countrywide for $4billion

[Allan from Fallbrook]

FLU: I caught that one, too. I thought the corporate-speak phrase was: “Leaving to pursue other interests”. Or, my fave: “Leaving to spend more time with his/her family”.

I guess in this case, they think staving off dozens of class-action lawsuits for shareholder fraud is fun. Those banking guys are a hoot!

The biggest question here is: Did BofA guess right, or wrong? The acquisition was at a considerable discount from the previous market cap, but the company is in disarray, with many thinking the worst is yet to come. It will be interesting to see how this plays out.

[TheBreeze]

My guess is they overpaid by about $104 billion.

[TheBreeze]

My guess is they overpaid by about $104 billion.

[TheBreeze]

My guess is they overpaid by about $104 billion.

[TheBreeze]

My guess is they overpaid by about $104 billion.

[TheBreeze]

My guess is they overpaid by about $104 billion.

[mydogsarelazy]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo’s country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide’s India based customer service employees be taught the phrase “Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage.”

4) Why are you buying one of America’s most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide’s assets deteriorate further over time.

JS

[mydogsarelazy]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo’s country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide’s India based customer service employees be taught the phrase “Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage.”

4) Why are you buying one of America’s most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide’s assets deteriorate further over time.

JS

[mydogsarelazy]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo’s country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide’s India based customer service employees be taught the phrase “Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage.”

4) Why are you buying one of America’s most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide’s assets deteriorate further over time.

JS

[mydogsarelazy]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo’s country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide’s India based customer service employees be taught the phrase “Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage.”

4) Why are you buying one of America’s most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide’s assets deteriorate further over time.

JS

[mydogsarelazy]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo’s country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide’s India based customer service employees be taught the phrase “Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage.”

4) Why are you buying one of America’s most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide’s assets deteriorate further over time.

JS

[Coronita]

The biggest question here is: Did BofA guess right, or wrong? The acquisition was at a considerable discount from the previous market cap, but the company is in disarray, with many thinking the worst is yet to come. It will be interesting to see how this plays out.

My guess is that they won't be doing the cleanup without assistance from the Gov. I'm sure they'll get some deal from the Fed. Fed will just use BofA as a proxy to do the toxic cleanup. I wasn't kidding in the previous post about all BofA doing "one time restructing charges" for the next couple of quarters or years….They'll just keep playing the game "we beat estimates before the one time charges", but here are the one time charges related to the CFC acquisition. You spread the loss over a couple of quarters over a few years, with the assistance of cash infusion from Fed or foreign companies ,possibly sell off some of this toxic waste at a huge discount to offshore investors, and in a few years, problem magically goes away. Lol….

 

They're already starting to play this game:

Bank of America expects a $1.2 billion restructuring charge from the transaction, and said it will need a couple of billion dollars of new capital to help preserve its capital ratios.

The next time, it will be another 1.2 billion. Do this across 8 quarters, you got a nice 10.6 billion in charges you just passed through over the course of 2 years, while still being able to look great to wall street ("it was only the one time restructuring charges".) This would be great for BofA to clean their own house too, everything bad is related to the restructuring. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

The biggest question here is: Did BofA guess right, or wrong? The acquisition was at a considerable discount from the previous market cap, but the company is in disarray, with many thinking the worst is yet to come. It will be interesting to see how this plays out.

My guess is that they won't be doing the cleanup without assistance from the Gov. I'm sure they'll get some deal from the Fed. Fed will just use BofA as a proxy to do the toxic cleanup. I wasn't kidding in the previous post about all BofA doing "one time restructing charges" for the next couple of quarters or years….They'll just keep playing the game "we beat estimates before the one time charges", but here are the one time charges related to the CFC acquisition. You spread the loss over a couple of quarters over a few years, with the assistance of cash infusion from Fed or foreign companies ,possibly sell off some of this toxic waste at a huge discount to offshore investors, and in a few years, problem magically goes away. Lol….

 

They're already starting to play this game:

Bank of America expects a $1.2 billion restructuring charge from the transaction, and said it will need a couple of billion dollars of new capital to help preserve its capital ratios.

The next time, it will be another 1.2 billion. Do this across 8 quarters, you got a nice 10.6 billion in charges you just passed through over the course of 2 years, while still being able to look great to wall street ("it was only the one time restructuring charges".) This would be great for BofA to clean their own house too, everything bad is related to the restructuring. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

The biggest question here is: Did BofA guess right, or wrong? The acquisition was at a considerable discount from the previous market cap, but the company is in disarray, with many thinking the worst is yet to come. It will be interesting to see how this plays out.

My guess is that they won't be doing the cleanup without assistance from the Gov. I'm sure they'll get some deal from the Fed. Fed will just use BofA as a proxy to do the toxic cleanup. I wasn't kidding in the previous post about all BofA doing "one time restructing charges" for the next couple of quarters or years….They'll just keep playing the game "we beat estimates before the one time charges", but here are the one time charges related to the CFC acquisition. You spread the loss over a couple of quarters over a few years, with the assistance of cash infusion from Fed or foreign companies ,possibly sell off some of this toxic waste at a huge discount to offshore investors, and in a few years, problem magically goes away. Lol….

 

They're already starting to play this game:

Bank of America expects a $1.2 billion restructuring charge from the transaction, and said it will need a couple of billion dollars of new capital to help preserve its capital ratios.

The next time, it will be another 1.2 billion. Do this across 8 quarters, you got a nice 10.6 billion in charges you just passed through over the course of 2 years, while still being able to look great to wall street ("it was only the one time restructuring charges".) This would be great for BofA to clean their own house too, everything bad is related to the restructuring. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

The biggest question here is: Did BofA guess right, or wrong? The acquisition was at a considerable discount from the previous market cap, but the company is in disarray, with many thinking the worst is yet to come. It will be interesting to see how this plays out.

My guess is that they won't be doing the cleanup without assistance from the Gov. I'm sure they'll get some deal from the Fed. Fed will just use BofA as a proxy to do the toxic cleanup. I wasn't kidding in the previous post about all BofA doing "one time restructing charges" for the next couple of quarters or years….They'll just keep playing the game "we beat estimates before the one time charges", but here are the one time charges related to the CFC acquisition. You spread the loss over a couple of quarters over a few years, with the assistance of cash infusion from Fed or foreign companies ,possibly sell off some of this toxic waste at a huge discount to offshore investors, and in a few years, problem magically goes away. Lol….

 

They're already starting to play this game:

Bank of America expects a $1.2 billion restructuring charge from the transaction, and said it will need a couple of billion dollars of new capital to help preserve its capital ratios.

The next time, it will be another 1.2 billion. Do this across 8 quarters, you got a nice 10.6 billion in charges you just passed through over the course of 2 years, while still being able to look great to wall street ("it was only the one time restructuring charges".) This would be great for BofA to clean their own house too, everything bad is related to the restructuring. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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