... Bank of America would utterly dominate U.S. residential real estate finance. The newly combined Bank of America, based on MortgageDaily.com 2007 third quarter origination numbers, would have originated $142 billion in mortgage and home-equity financings. The next closest: Wells Fargo at $68 billion.
... For Bank of America the cost savings inherent in combining Countrywide's market-leading residential lending platform with its own fourth-place effort are no doubt tempting. The bank would also pick up millions of customers - as well as thousands of depositors from Countrywide's own bank - to peddle a variety of higher-margin personal finance offerings. It would also, presumably, bail out the $2 billion investment Bank of America made in the lender in August. Prior to the news, the bank was out a cool $1.4 billion on the trade.
January 10, 2008
BofA Countrywide deal
Fortune Magazine has presented this prospective on the deal, which I think is valid. BofA has always wanted to buy Countrywide to boost its mortgage origination business but Countrywide was flying high in their valuation, which would not stop BofA anyways as it has a reputation for overpaying. The credit crises has presented a good price for BofA but and it is big but how much losses on the books of Countrywide.
Here is parts of the article: