Merger Watch: Bank of America to purchase Countrywide Financial
Status:
Comment period closed. Acquisition approved 6/2008.
Background:
On January 11, 2008, Bank of America announced its intention to buy Countrywide Financial for $4.1 billion in stock. Many groups are opposing this historic merger of one of the largest banking institutions in the country with the largest mortgage lender in the country. The Federal Reserve Bank scheduled public hearings in Chicago and Los Angeles to allow community and advocacy groups to voice their opinions, concerns, support, or opposition.
What's at Stake:
With this acquisition, Bank of America would acquire a portfolio of approximately nine million borrowers from Countrywide, one of the nation’s most notorious abusive lenders. A transaction of this magnitude would have far-ranging implications for low and moderate income communities across the country. It is incumbent on the Federal Reserve Board to condition any approval of the acquisition on Bank of America’s firm commitment to adhere to strict lending standards and to managing the nation’s largest servicing portfolio in a responsible manner that will not harm the public interest.
 TAKE ACTION!
Organizations are urged to submit comment letters to the Federal Reserve Bank, expressing opposition to the merger and demanding a clear plan moving forward for Countrywide borrowers. Comments are due by May 5. You can use this sample letter as is, or incorporate client stories from your own organization and add any other specific concerns your organization may have with the merger.
Comments can be submitted via:
Email:
rich.bsrinternet (at) rich.frb.org Fax:
202-452-3462
(attention
Jennifer J. Johnson, Secretary of the Board, Board of Governors of the Federal Reserve System) Mail:
Mr. A. Linwood Gill, III, Vice President
Federal Reserve Bank of Richmond
701 East Byrd Street
Richmond, VA 23219
See the links below for more information:
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The Federal Reserve Bank of Richmond records indicate that the application was filed the week of March 1, 2008 and public comments will be accepted until 3/31/2008. The public comment period was extended until 4/29/2008, and then again until 5/5/2008.
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On February 1, 2008, NEDAP, along with California Reinvestment Coalition, CRA-NC, and Woodstock Institute, called on the U.S. Congressional Banking Committees to hold investigative hearings on the future of Countrywide borrowers and employees, in the context of Bank of America's proposed acquisition of Countrywide. Read full press release.
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