Page 7 - Bank of America E Teaching Note
P. 7
The real challenge and focus of strategic attention for
BofA and its leadership lay with Countrywide Financial.
This acquisition would prove to be toxic, where it cost the
bank $4 Billion for the troubled lender and loan servicer it
subsequently, paid over $91.2 Billion in penalties and
fees, most of which was the result of the purchase of
Countrywide Financial. In addition, it put BofA clearly in
the sights of the regulatory authorities for their
misdeeds.
On balance it took BofA a decade and more money than
was thought possible, but it made it through the crisis,
stronger than ever, emerging in 2018 with a unique
combination of low valuation and a positive growth
position - the future looks bright for BofA.
