BofA buys CountryWide for $4 billion..... - GoFuckYourself.com

DateDoc · 01-11-2008, 03:01 PM

Amazing. Good job that BofA is huge and can hopefully absorb this failing mortgage company. While it now makes them the largest lender in the US, it also comes with a lot of liabilities.

Quote:

Bank of America came to the rescue of embattled mortgage lender Countrywide Financial Corp. Friday, announcing it would buy the company for $4 billion in an all-stock deal.

Countrywide (CFC, Fortune 500) shares tumbled 15 percent in afternoon trading on the New York Stock Exchange a day after soaring 51 percent on speculation that the deal was forthcoming. Bank of America (BAC, Fortune 500) stock edged lower.

http://money.cnn.com/2008/01/11/news...yes&eref=yahoo

TheDoc · 01-11-2008, 03:07 PM

Isn't BoA a multi trillion dollar company? $4b to them is like $100 to me. - Crazy buy either way

FreeHugeMovies · 01-11-2008, 03:09 PM

Charlotte, NC saves the US again!

warlock5 · 01-11-2008, 03:59 PM

Quote:

Originally Posted by TheDoc

Isn't BoA a multi trillion dollar company? $4b to them is like $100 to me. - Crazy buy either way

If you count its depositors assets, but I'm sure when you put money in your savings account you do not consider it a donation to the bank. Their market cap is $170 billion, but given liabilities and other issues it could very well be less.

For example, nearly all of the big investment banks had leverage ratios around 1:30. It just broke on the wire today that WaMu and JP Morgan may be merging, very likely an insolvency issue with one of the parties.

The brutalness of this current credit crises is largely being under recognized given the absence of a one day stock market collapse.

farkedup · 01-11-2008, 04:03 PM

when the fed cuts interest again in a couple weeks that'll help big time... They'll hopefully get things back to where they were a few years ago as far as lending goes.

qxm · 01-11-2008, 04:03 PM

good call by B of A otherwise countrywide was doomed to bankruptcy.........

Sosa · 01-11-2008, 04:13 PM

lots of money exchanged there

mrthumbs · 01-11-2008, 04:15 PM

Quote:

Originally Posted by Sosa

lots of money exchanged there

sharp

very sharp

TheDoc · 01-11-2008, 04:18 PM

Quote:

Originally Posted by warlock5

If you count its depositors assets, but I'm sure when you put money in your savings account you do not consider it a donation to the bank. Their market cap is $170 billion, but given liabilities and other issues it could very well be less.

Ahhh, wrong bank then. One of them is worth trillions and bought out a mortgage company not to long back. I thought BoA had that kind of size since they like to act the part.

warlock5 · 01-11-2008, 04:21 PM

There is no bank worth trillians, by market capitalization Bank of America is the biggest.

TheDoc · 01-11-2008, 04:35 PM

That would be an incorrect statement.

Pleasurepays · 01-11-2008, 04:44 PM

Quote:

Originally Posted by TheDoc

Ahhh, wrong bank then. One of them is worth trillions and bought out a mortgage company not to long back. I thought BoA had that kind of size since they like to act the part.

you are thinking of citibank probably.

TheDoc · 01-11-2008, 04:46 PM

Quote:

Originally Posted by Pleasurepays

you are thinking of citibank probably.

Oh yeah, citybank/group, that's right.. not just the largest bank but also the largest company in the world.

SomeCreep · 01-11-2008, 04:50 PM

BofA already owned a large stake in Countrywide, which they accumulated at a much more expensive share price. They figured since Countrywide stock has gone down so much in the past year, they might as well throw a few billion more at it and acquire the whole company to catch maximum upside on the rebound.

baddog · 01-11-2008, 05:05 PM

hmmm, wonder if they will now let me auto-pay

01-11-2008, 03:07 PM	#2
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	Isn't BoA a multi trillion dollar company? $4b to them is like $100 to me. - Crazy buy either way __________________ ~TheDoc - ICQ7765825 It's all disambiguation

01-11-2008, 04:03 PM	#5
farkedup Confirmed User Join Date: Nov 2007 Location: Kalamazoo, MI Posts: 2,490	when the fed cuts interest again in a couple weeks that'll help big time... They'll hopefully get things back to where they were a few years ago as far as lending goes. __________________ -- QUOTE ME IT MAKES ME FEEL SPECIAL --

01-11-2008, 04:03 PM	#6
qxm Confirmed User Join Date: Jul 2006 Location: NoHo Posts: 5,970	good call by B of A otherwise countrywide was doomed to bankruptcy......... __________________ ICQ: 266990876

01-11-2008, 04:35 PM	#11
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	That would be an incorrect statement. __________________ ~TheDoc - ICQ7765825 It's all disambiguation

01-11-2008, 04:50 PM	#14
SomeCreep :glugglug Join Date: Mar 2003 Location: Where the Wild Things Are Posts: 26,118	BofA already owned a large stake in Countrywide, which they accumulated at a much more expensive share price. They figured since Countrywide stock has gone down so much in the past year, they might as well throw a few billion more at it and acquire the whole company to catch maximum upside on the rebound. __________________ Webair Hosting I use and recommend Webair for hosting.

01-11-2008, 03:09 PM	#3
FreeHugeMovies Too lazy to set a custom title Join Date: Dec 2001 Location: Charlotte, NC Posts: 14,137	Charlotte, NC saves the US again!

01-11-2008, 04:13 PM	#7
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	lots of money exchanged there

01-11-2008, 04:21 PM	#10
warlock5 Confirmed User Join Date: Jan 2004 Location: Uranus Posts: 2,808	There is no bank worth trillians, by market capitalization Bank of America is the biggest.

01-11-2008, 05:05 PM	#15
baddog So Fucking Banned Industry Role: Join Date: Apr 2001 Location: the beach, SoCal Posts: 107,089	hmmm, wonder if they will now let me auto-pay