Yes, Countrywide Really Was That Bad for Bank of America

Any Bank of America investor or banking-sector fan knows that Bank of America's acquisition of Countrywide will go down as one of the worst of all time.

The mortgages written by Countrywide ultimately became responsible for billions of dollars of legal expenses for Bank of America. But how much worse were these loans? Matt Koppenheffer details these loans in his article "The Great Undoing of Bank of America."

In this video, Matt joins Motley Fool banking analyst David Hanson to discuss this article and tell investors the key takeaway from the multiyear debacle.


With the amount of legal uncertainty diminishing for Bank of America, are shares poised to climb higher? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analyst Anand Chokkavelu, CFA, joins Matt to lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

The article Yes, Countrywide Really Was That Bad for Bank of America originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America.  You can follow  David  and  Matt  on Twitter . The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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nklswrth

Even worse than the bad Countrywide loans is the fact that many of the people that wrote them were hired by other banks and mortgage lenders. So they are still out there, waiting for thier next victim. Amazes me how anyone that was a former Countrywide employee could find a job in banking or finance, but then you only have to look at JP Morgan and thier CEO, to realize that greed outweighs ethics every day in that industry.

May 27 2013 at 9:58 AM Report abuse rate up rate down Reply