Last week, Bank of America agreed to pay $335m to settle racial discrimination lending charges against Countrywide, a sub-prime lender that it now owns. Some cheered upon hearing there were financial repercussions for breaking the law — though it is alleged Countrywide misrepresented its mortgage origination practice during the sale to BofA — but most complained that the penalty wasn’t large enough. (Short Form Blog points out that the settlement was the largest of its type ever, which is a fair point.)
Not to worry, says one bank analyst: The acquisition of Countrywide, one of the most perverse sub-prime lenders that fueled the bubble that caused the great recession, might end up costing it $53b when it’s all said and done. Here’s how.
Naturally, the same analyst has a Buy rating on Bank of America stock.
Attention journalists and spot-news photogs: Bank of America will for three days have actual people on hand to listen to homeowners beg to keep their homes. The spectacle runs from 8 a.m. to 8 p.m. today through Wednesday at the Boston Marriott Long Wharf hotel at 296 State Street.
I’m not saying this would be the ideal time to dedicate resources to some diligent, on-the-ground, man-on-the-street reporting of the foreclosure crisis — you’ve probably never heard of the American Securitization Forum, have you? — to examine once again what fueled this ridiculous bubble and observe why, right now, at this point in time, people really can’t stand banks in spite of the fact that such entities are an absolutely essential element of this economy. I’ll put this here and let y’all figure it out.
The economics of offering a debit card have changed with recent regulations.