When Lender out-of The usa Corp. obtained home loan giant Countrywide Financial Corp. 3 years in the past recently, cementing BofA’s status due to the fact a consumer financial leader, the cost is a measly $2.5 million for the stock.
Although actual prices could easily be 10 to 15 moments you to definitely amount following family lender obtain huge losses around BofA’s ownership additionally the bank provided to shell out billions of dollars so you can settle lawsuits over bad finance produced by Countrywide into the property increase. 4 billion during the questioned can cost you into the tally.
The newest setting up numbers have made the acquisition out of Countrywide certainly one of the quintessential mistaken takeovers on the reputation of banking, experts state.
The newest poor from the a kilometer, FBR Money Avenues expert Paul Miller told you – or perhaps this new worst since the the guy began adopting the community into the 1992. (more…)