Real Estate News : You’re Paying for Bank of America to Buy Countrywide

June 27, 2008 | By | 4 Replies More

Real Estate News : You're Paying for Bank of America to Buy CountrywideYou heard me right…that’s your hard earned tax dollars at work. Here’s a clip from Bloomberg:

“Bank of America Corp.’s $3 billion takeover of Countrywide Financial Corp. will be financed by 138 million tax-paying Americans.

Bank of America, led by Chief Executive Officer Kenneth Lewis, can use tax write-offs to pay for Countrywide, the country’s biggest mortgage lender, said Robert Willins, a former managing director at Lehman Brothers Holdings Inc. who now runs his own accounting firm. Taxpayers may pick up about $5 billion of Countrywide’s losses over 20 years, he said. Countrywide shareholders approved the sale today.”

Check out the full article, “Bank of America’s Countrywide Tab Signed by Taxpayers.”

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Category: Real Estate News

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  1. Wil Christenson says:

    So, the question that comes to mind is whether we would pay more by letting the banking fallout take it’s true course without government (tax money) intervention.

  2. ATurner says:

    The kind of deals that big businesses work out just amaze me. I want to meet the man behind that negotiation.

  3. Tage says:

    Deals like this just erk me. It seems like more and more expenses or investments can be deemed a “tax write off.” Sure they could be saving us in the future by “saving the industry”, but will we see the profits when the industry turns around?