The Worst Bank Acquisition Ever ?

Voltage Sign

There are a few contenders for this accolade - Credit Suisse's 2000 acquistion of DLJ, Royal Bank of Scotland's 2007 ABN AMRO deal. But this has to take the biscuit.

It's Bank of America's 2008 acquistion of Countrywide.

And The Wall Street Journal has been tallying up the costs:

Mortgage-security repurchases - at least $13bn

Mortgage bond settlement - $8.5bn

Loan modifications - $8.4bn

Settlement of class action - $600m

Mortgage abuse settlement - $335m

Federal Trade Commission claim - $108m

Losses - Bank of America's mortgage business (some of which is Countrywide) lost $8.9bn in 2010 and $3.8bn in 2009.

Nice one, Ken!

Source - The Wall Street Journal

 

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts