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 Bank of America Corp.'s steal of a deal for Countrywide Financial Corp. is getting more and more expensive. The Charlotte, N.C., bank announced that it will spend $8.4 billion to provide relief to 400,000 Countrywide customers as a settlement of lawsuits in 11 states including California, Illinois and Florida.
Countrywide, which was acquired by Bank of America for $4 billion in July, was sued by the states for allegedly conducting predatory lending practices. The $8.4 billion will offer customers direct loan relief by cutting interest rates and principles on troubled mortgages, waiving certain fees and setting aside funds for foreclosure relief and relocation. It's interesting to note that the integration of Countrywide, which BofA CEO Ken Lewis initially said in July would be immediately accreditive, is costing double the acquisition price. It just goes to show that it costs a lot to "take over the world." - Maria Woehr See Corporate Dealmaker: BofA continues to put its stamp on Countrywide Categories Deal Video
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