When you consider the fact that Bank of America has lost nearly $100 billion on their Countrywide Financial purchase, it’s sort of a laugh that they then had to pay a fee of $335 million to settle allegations that they discriminated against black and Hispanic borrowers.
What’s more, it’s a laugh since they were trying to dupe all customers more or less. They didn’t care what you looked like they were ready to loan you money to buy a house since the housing market was only going to go up and up and up.
BofA has already settled on issues that Countrywide over charged struggling home owners on the verge of bankruptcy and for shareholder lawsuits saying they hide their loan losses – those two settlements totaling $708 million. So, when you add on the latest settlement you get around $1.43 billion tacked on to the pile of losses related to all the bad loans on their books from the purchase. Countrywide is sort of like the gift that just keeps on giving.
Countrywide is going to go down as one of the worst purchases ever. And remember, Bank of America bought it for just $2.8 billion. Yeah, they’ve already paid settlement fees for about half the purchase price.