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BacProxyVote.com - Bank of America's Assumed Credit Risk Through Acquisitions Under Chairman-CEO Ken Lewis.

BacProxyVote.com - Bank of America's Assumed Credit Risk Through Acquisitions Under Chairman-CEO Ken Lewis.

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Breakdown of the immense credit risks assumed by the Bank of America under the chairmanship of Ken Lewis through the Merrill Lynch and Countrywide acquisitions in the past two years.
Breakdown of the immense credit risks assumed by the Bank of America under the chairmanship of Ken Lewis through the Merrill Lynch and Countrywide acquisitions in the past two years.

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Categories:Business/Law, Finance
Published by: Customs Street Advisors on May 04, 2009
Copyright:Attribution Non-commercial

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05/11/2014

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Credit Risk Assumed Through Acquisitions
Countrywide Acquisition –click to details
Merrill Lnch Acuisition –click to details 
 www.BACPROXYVOTE.com
 
Countrywide –Credit Risk Assumed
 Acquired Unknown Credit Risks to Balance Sheet
$ 26.4 BN Pay Option Arm Loans (negative amortization)
$2.4 BN Sub Prime Loans
$33.4 BN Home Equity + 2
nd
Lien Loans
$1 BN in Level Derivative Assets Acuired Excludin
 
Mortgage Servicing Rights
Total of $97.2 BN in assets listed above EXCEED 2x TangibleBook Value ($46.6BN at 6/30/08) before acquisition
 Worsening Credit Trends at Acquisition Date
Charge offs rose by over 700% for six months ended 6/30/08 ascompared to prior year
$750 MM Additional Charges in Q4 2008 for asset quality deterioration (after purchase accounting adjustments)
 www.BACPROXYVOTE.com
 
Countrywide Credit Risk Assumed #2
Unknown Litigation Risk / Costs Prior to Close
5 States Attorney General Suits Prior to Closing
 At least 6 Subsequent AG Suits
October 2008 Agreement with 11 Attorneys General to modify . , ,
$220Million Reserved for Settlements to Date
 www.BACPROXYVOTE.com

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