Bank of America's (NYSE: BAC) acquisition of Countrywide Financial has been a complete disaster, although it has mostly lurked in the shadows of Ken Lewis' other enormous screw-up, Merrill Lynch.In an effort to put the deal in the past, Bank of America has decided to plaster over the Countrywide Financial and replace it with "Bank of America Home Loans." The reason: Few people want to go to a company whose name is synonymous with mortgage fraud, housing bubbles, misleading sales tactics and foreclosures.
Barbara Desoer, the executive in charge Bank of America Home Loans, tells (subscription required) The Wall Street Journal that the re-branding will be aimed at emphasizing that Bank of America is a "responsible lender."
With all the bad press Bank of America is getting -- bad corporate governance, writedowns, taxpayer bailout, etc. -- I wonder whether they wouldn't be better off renaming Countrywide Financial something completely unrelated to either failed company.
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Reader Comments (Page 1 of 1)
2-19-2009 @ 12:55PM
Ward Welvaert said...
Why don't they just fold the entire Countrywide operation? Absorb or write down the existing portfolio and move on.
2-19-2009 @ 1:24PM
cigarsANDvino said...
I find this article to be a bit biased. You look like you "have it in" for Ken Lewis. The fact of the matter is, all the big banks took tax payer money if they need it or not. Bank of America has also recently paid back a portion of it's loan, though I see you make no mention of that in this story as it likely will dampen some of the sizzle. If you take a moment to review BAC's history compared to a Citi, or a JPMC. You will see a noticable lack in something, and that is scandal. I'm all for telling the truth, but do me and your other readers a favor... be honest and fair. Bias only weakens your position.
2-19-2009 @ 3:03PM
lasuno said...
i agree, this article is very biased.
2-19-2009 @ 4:06PM
colorblindwhitey said...
cigarsANDvino, I couldn't agree more. This is definately an article that could have been written by someone hoping to replace Ken Lewis. The Contrywide deal is not as bad as it seems and certainly not as bad as Merril. I've lost a lot of money on this stock and still think Lewis is likely to pull out of it. Yeah, Merril was a bad move, but BAC is not the only one consolidating and changing banners. Get over yourself, Zac.
2-19-2009 @ 3:30PM
D ROSSI said...
ONE MAN'S OPINION, DUH.....
2-19-2009 @ 5:05PM
davis10oregon1 said...
YOUR CLOSING SENTENCE SHOULD BE THE NEW DIRECTION OF THOSE OTHER FAILURES, THAT FOR MONTHS SEEMINGLY HAVE GONE UNNOTICED.
ARE THEY ON SOUND FOOTING ? ( B A C )
2-20-2009 @ 3:54PM
wesley ishee said...
this is a nonsense article with no foundation. The author is a festering turd on the roadside of a third world ghetto.