Remember this Econ 101 lesson from a few months back? I get a similar feeling when I read about Bank of America’s buy-out of Countrywide this morning. B of A poured about $2 billion into the sub-prime lender late last summer and has since seen the value of their investment plunge to about $560 million. And they’ve been losing more every day.
I guess they had to do it, but it seems like a bad idea to me. Locally Countrywide is a 50-50 partner with OnPoint Community Credit Union, where I do my banking, in OnPoint’s mortgage business. What happens with that is yet to be seen.
0 responses so far ↓
1 Justin // Jan 12, 2008 at 1:31 pm
This is one of those where we’ll just have to wait and see.
I’m skeptical, but maybe BofA knows what they’re doing.
Leave a Comment