Could Countrywide Cause The Death Of Bank of America?

The current leadership of Bank of America keeps undoing acquisition after acquisition by its previous head, Kenneth D. Lewis.

Now it is selling off its overseas credit card units.

Perhaps the most disastrous purchase by Ken Lewis was Countrywide. The bitter dregs of its risky mortgages are yet to be fully known but as each month goes by, Countrywide seems to pull down Bank of America.

Countrywide was go-go-go for years and kept eating up more and more of the subprime housing market until subprime went bust in 2007, almost taking down Countrywide with it. Countrywide engineered a quick sale to Bank of America and the bank has been licking its wounds ever since.

Report:

Exiting the Canadian and European businesses would lower Bank of America’s capital needs by eliminating $27.6 billion of more-risky assets and may help it avoid having to sell new shares, Ed Najarian, head of bank research at International Strategy and Investment Group, said Monday in a research note.

Bank of America is mulling its options regarding the U.K. and Ireland businesses it is exiting, said Jerry Dubrowski, a company spokesman, declining to comment on what those options are. The TD transaction is expected to be completed in the fourth quarter, the company said in the statement.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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