Bank of America Buys Countrywide

So it’s all over the national news that Bank of America bought Countrywide. What’s interesting is that it’s a great deal for Bank of America and Countrywide both from what I can see.

Bank of America gets the ‘write offs’ it can use for it’s profit/loss bottom line and Countrywide gets the beefy back-up of the largess of B of A.

Even more interesting is to see how different media report the angle on the deal.

The BBC News sees it as ‘struggling’ Countrywide:

Bank of America agrees to acquire struggling mortgage firm Countrywide Financial, which has been hit by the credit crisis.

CNN Money says it’s a ‘rescue’:

Bank of America came to the rescue of embattled mortgage lender Countrywide Financial Corp.

I think Pegasus News has one thing right, this makes the B of A the nation’s largest mortgage company:

Yes, someone took pity on Countrywide. Bank of America is now the nation’s largest mortgage company after buying Countrywide for $4 billion. …

ABC 12 in Michigan says that Countrwide faced bankruptcy:

America’s biggest consumer bank is buying the nation’s largest mortgage lender, saving Countrywide Financial from possible bankruptcy in the middle of the mortgage crisis

And The Washington Times puts forth that Ken Lewis of Bank of America is taking a gamble:

In a career defined by blockbuster deals, Bank of America chief executive Ken Lewis has taken his biggest gamble yet with an attempt to rescue the country’s biggest mortgage lender, Countrywide Financial.

I hardly think this was a gamble. Rather, a clever and very strategic move on Lewis’ part to take advantage of a potentially great opportunity for Bank of America. This wasn’t any ‘rescue’ but rather a great move on the part of B of A to get the acquisition of Countrywide at a time of perfect synchronicity for both firms. A truly symbiotic situation in my opinion.


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