Countrywide, a long time major player in the Sub-Prime market, is set to be taken over by Bank of America, one of the few remaining large banks capable of the takeover.
On June 5th the Federal Reserve announced its approval of the notice that would allow Bank of America to indirectly acquire Countrywide Bank. Under the approval notice, BoMA would acquire Countrywide Financial Corporation and thereby acquire Countrywide Bank, FSB. Other non-banking subsidiaries would also be acquired in the takeover, including credit extension and loan servicing, real estate and personal property appraisal, asset management and debt servicing and collection.
The deal would add Countrywide’s approximately $61.7 billion in controlled deposits to the $1.7 trillion that BoMA already holds. BoMA is the largest depository organization in the United States when measured by total deposits, controlling approximately $711.7 billion, or about 10.04 percent of the total amounts of insured deposits in the country.
