BofA completes deal for Countrywide Financial
By The Associated Press Tuesday, July 01, 2008CHARLOTTE, N.C. - Bank of America Corp. completed its purchase of Countrywide Financial Corp. Tuesday, making the Charlotte-based bank the nation’s leading mortgage originator and servicer.
The Federal Reserve and Countrywide’s shareholders cleared the way for the acquisition last month. As of Tuesday’s close, Bank of America controls between 20 percent and 25 percent of the country’s home loan market.
Bank of America agreed in January to purchase the California-based mortgage lender in an all-stock deal valued at roughly $4 billion, exchanging 0.1822 shares of Bank of America for each share of Countrywide outstanding. Today, the deal is now worth around $2.5 billion, reflecting a decline in Bank of America’s stock price over the last six months.
Bank of America shares rose 13 cents to $24 in early trading.
The bank is expected to eliminate 7,500 jobs from its combined mortgage, home equity and insurance divisions. The company will begin originating mortgage and home equity products under the Bank of America brand by mid-2009.
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