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2096229 2038-01-18 05:00:00.0 UTC 2038-01-18T00:00:00.000-05:00 2011-07-01 12:05:50.0 UTC 2011-07-01T08:05:50.000-04:00 content/and-award-worst-deal-modern-banking-goes published 2011-07-01 12:05:50.0 UTC 2011-07-01T08:05:50.000-04:00 drupal 47414 Wake up and good morning. It's one of the most competitive awards out there... the worst deal in modern banking. But the award goes, hands down, to Bank of America's What Were They Thinking executives for buying the totally toxic Countrywide Mortgage business in 2008. This is the mortgage company that has become the symbol of home lending gone wild, of personal greed and corruption, of political favor and excess, and of regulatory oversight gone blind. Countrywide was the creation and eventual mutation of its ex-CEO, Angelo Mozilo (shown above, AP photo). Want to know more than you dare about Mozilo? Read this New Yorker profile. Countrywide is the big reason this week that Bank of America agreed to pay $8.5 billion to resolve bondholder claims over soured mortgages. That settlement will contribute to a second-quarter loss of $8.6 billion to $9.1 billion, or 88 cents to 93 cents a share. Bank of America also said it's adding $5.5 billion to a liability reserve for future loan-repurchase demands and will record $6.4 billion in other charges including legal costs and a write-down of mortgage-unit goodwill. All in all, we're talking about a $20 billion hit. And don't assume this will be the last of the mortgage damage to BofA. Countrywide, as one Bank of America director told the Wall Street Journal, is the "worst deal we ever made." Well, that recognition is better late than never. Congratulations, BofA and Countrywide. -- Robert Trigaux, Business Columnist, St. Petersburg Times Robert Trigaux venturebiz Bank of America,Countrywide Mortgage,fraud,Regulatory oversight,banks,bankruptcy And award for worst deal in modern banking goes to.... templatedata/tampabaytimes/BlogArticle/data/venturebiz/2011/07/01/47414-and-award-worst-deal-modern-banking-goes BlogArticle 2012-11-11 22:43:09.0 UTC 2012-11-11T17:43:09.000-05:00 Wake up and good morning. It's one of the most competitive awards out there... the worst deal in modern banking. But the award goes, hands down, to Bank of America's What Were They Thinking executives for buying the totally toxic Countrywide Mortgage business in 2008.Bank of America,Countrywide Mortgage,fraud,Regulatory oversight,banks,bankruptcyBank of America,Countrywide Mortgage,fraud,Regulatory oversight,banks,bankruptcyRobert Trigaux 380405 2038-01-18 05:00:00.0 UTC 2038-01-18T00:00:00.000-05:00 2012-10-25 12:47:39.0 UTC 2012-10-25T08:47:39.000-04:00 robert-trigaux published Robert Trigaux <p>Robert Trigaux joined the <i>Times</i> as a business writer in 1991. In 2000, he began writing a business column three times a week. He served as business editor from 2005 to 2008, when he resumed his role as business columnist. While at the <i>Times</i>, he has covered a range of beats including banking and finance, technology, telecommunications, energy and economic development. He has received various awards for business writing, including two Green Eyeshades from the Society of Professional Journalists, a commendation for column writing from the Society of American Business Editors and Writers and a first place in business columns from the National Association of Newspaper Columnists.</p><p>In the late 1970s, Robert started his business journalism career in New York writing for various business publications covering topics from technology to the furniture industry. At the <i>American Banker</i>, a daily national newspaper, he covered the financial industry in New York and London, then served for eight years as its bureau chief in Washington, D.C. He holds an economics degree from Colgate University.</p> Times Business Columnist writers DTI 35045303 Robert Trigaux joined the Times as a business writer in 1991. In 2000, he began writing a business column three times a week. He served as business editor from 2005 to 2008, when he resumed his role as business columnist. While at the Times, he has covered a range of beats including banking and finance, technology, telecommunications, energy and economic development. He has received various awards for business writing, including two Green Eyeshades from the Society of Professional Journalists, a commendation for column writing from the Society of American Business Editors and Writers and a first place in business columns from the National Association of Newspaper Columnists. In the late 1970s, Robert started his business journalism career in New York writing for various business publications covering topics from technology to the furniture industry. At the American Banker, a daily national newspaper, he covered the financial industry in New York and London, then served for eight years as its bureau chief in Washington, D.C. He holds an economics degree from Colgate University. <p>Phone: (727) 893-8405</p><p>Email: <a href="mailto:trigaux@tampabay.com ">trigaux@tampabay.com</a></p><p>Blog: <a href="http://blogs.tampabay.com/venture/">Venture</a></p><p>Twitter: <a href="https://twitter.com/VentureTampaBay">@VentureTampaBay</a></p> 1 resources/images/dti/2012/10/Trigaux_Bob_wp.jpg true templatedata/tampabaytimes/AuthorProfile/data/35045303-robert-trigaux AuthorProfile 2012-10-25 12:47:39.0 UTC 2012-10-25T08:47:39.000-04:00 <p><img alt="angelomozilo-ceo-countrywide-fraudap.jpg" width="453" height="334" class="ibimage" src="/resources/images/blogs/venturebiz/47412.jpg" /></p> <p><strong>Wake up and good morning.</strong> It's one of the most competitive awards out there... the worst deal in modern banking. But the award goes, hands down, to <strong>Bank of America's <em>What Were They Thinking</em> executives</strong> for buying the <strong>totally toxic Countrywide Mortgage</strong> business in 2008.</p> <p>This is the mortgage company that has become the symbol of home lending gone wild, of personal greed and corruption, of political favor and excess, and of regulatory oversight gone blind. Countrywide was the creation and eventual mutation of its ex-CEO, <strong>Angelo Mozilo</strong> (<em>shown above, AP photo</em>). Want to know more than you dare about Mozilo? Read this <a href="http://www.scribd.com/doc/16686852/Angelo-Mozilo-Profile"><em>New Yorker </em>profile.</a></p> <p>Countrywide is the big reason this week that <a href="http://articles.sfgate.com/2011-06-30/business/29720316_1_mortgage-firms-freddie-mac-mortgage-related">Bank of America&nbsp;agreed to pay $8.5 billion</a> to resolve bondholder claims over soured mortgages. That settlement will contribute to a second-quarter loss of $8.6 billion to $9.1 billion, or 88 cents to 93 cents a share. Bank of America also said it's adding $5.5 billion to a liability reserve for future loan-repurchase demands and will record $6.4 billion in other charges including legal costs and a write-down of mortgage-unit goodwill.</p> <p>All in all, we're talking about a $20 billion hit. And don't assume this will be the last of the mortgage damage to BofA.</p> <p>Countrywide, as one Bank of America director told the <em>Wall Street Journal</em>, is the <a href="http://www.huffingtonpost.com/2011/06/30/bofa-countrywide-worst-deal_n_887865.html">&quot;worst deal we ever made.&quot;</a> Well, that recognition is better late than never.</p> <p>Congratulations, BofA and Countrywide.</p> <p>-- Robert Trigaux, Business Columnist, <em>St. Petersburg Times</em></p>trueruntime2016-08-30 05:46:31