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BofA takeover of Countrywide approved
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CALABASAS — Countrywide Financial Corp. shareholders today approved an estimated $2.8 billion takeover by Bank of America Corp., signaling the end to the dramatic rise and fall of the mortgage lending company.
Angelo Mozilo, a butcher's son from the Bronx, cried while describing to shareholders how he founded the company in 1969 with the help of a loan from Bank of America, according to a shareholder who attended the closed meeting at the company's headquarters in Calabasas.
Mozilo noted how the company has come full circle.
Shareholders voted 69 percent in favor of the deal, said Scott Adams, the western region pension program coordinator for the American Federation of State County & Municipal Employees. The group owns 48,000 shares.
Adams said the meeting was over in 18 minutes. He left upset because no shareholders were allowed to make a statement in what was the most important vote in the company's history. He brought a prepared statement that he didn't get a chance to read. "What kind of future awaits us at Bank of America after this shotgun wedding?" according to his statement. "Let us hope it's not a future where shareholders voices are silent."
The all-stock deal, valued in January at about $4 billion, is now valued at around $2.8 billion, reflecting a decline in Bank of America's stock price over the last six months.
Posted by SpiderWoman on June 25, 2008 at 10:50 a.m. (Suggest removal)
Great, now B of A can screw up their accounts too!
Posted by BeaHappi on June 25, 2008 at 11:02 a.m. (Suggest removal)
What does this mean for county Countrywide employees? Will some of their jobs still exist here?
Sounds like more layoffs and/or relocations are in the near future.
Posted by busymommy on June 25, 2008 at 12:21 p.m. (Suggest removal)
Bof A s*ucks and so does Countrywide. They both have very poor customer service and are all about making a profit and screwing their customers to get it.
Posted by mikeb6804 on June 25, 2008 at 12:49 p.m. (Suggest removal)
Now will B of A give home loans to illegals?
Posted by Comments on June 25, 2008 at 1:01 p.m. (Suggest removal)
Geez, what an assinine comment Mike. It's not a lender's job to care about a buyer's immigration status. Did you know that it's legal to buy property in the US even if you're not a citizen? There are many vacation homes owned by foreigners. In addition, many Americans own homes in other coutries. Are you suggesting that that practice become illegal?
It will never cease to amaze me how some individuals will twist any news story in order to rant about their own pet "issues."
Posted by jdub17 on June 25, 2008 at 2:18 p.m. (Suggest removal)
Comments- I think Mike was referring to B of A's practice in giving illegal aliens credits cards, which was a big story in the news last year.
Posted by SpiderWoman on June 25, 2008 at 2:19 p.m. (Suggest removal)
I think Mike was pointing out that B of A opens up accounts to illegals, a little witty remark!
Posted by mikeb6804 on June 25, 2008 at 2:23 p.m. (Suggest removal)
Comments --jdub17 is right. In case you've forgotten (or never knew), B of A offered credit card accounts distinctly tailored toward illegal aliens. If my disagreement with that practice doesn't meet with your approval, well tough. I would have to say your outlook is assinine.
Posted by LiChDom on June 25, 2008 at 5:07 p.m. (Suggest removal)
Unfortunately, something like this was bound to happen. I was involved with escrows for the last 10 years and saw when the housing market went crazy and prices of homes kept rising based, not on fair market value, but on an artifically inflated market. Lenders were giving loans not based on what a buyer could afford, nor on the appraised value of a home, but just to make a buck. Countrywide was one of the lenders that would offer these high-risk buyers a 100% loan. Someone had to know what would happen when the market did a self-correction (as it always does). Lenders knew these borrowers would not be able to afford these inflated mortgage payments. Buyers are at fault also because they wanted an over-priced home no matter if they could afford it or not. They could have rented. Also B of A had a reputation for pulling out of a home loan in the 11th hour and causing the buyers to scramble around for another loan.
Also, I believe the term "illegal" alien refers to a person entering a country outside of legal means. No one would give a home loan to an "illegal" alien, but they would give a loan to a legal alien. Now an all-cash deal is another story.
Posted by SmashyCrashy on June 25, 2008 at 8:23 p.m. (Suggest removal)
It isn't a question of if there will be layoffs here, it is how many layoffs will there be?
Check out any commercial RE site, there are a lot of local Countrywide buildings up to take over sublease, or take a lease, or be able to buy.
I think the local footprint will be smaller simply because California is a high cost area, why stay when the job can be done cheaper in another area?
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