NPR has a story on the five year anniversary of the purchase of the biggest purveyor of sub-prime mortgage crap, the mortgage company which ripped off more people and threw more into bankruptcy than any in history.
Jim Zarolli, from the interview, who echoes my oft quoted line about this being the worst acquisition in the history of corporate America:
Once the acquisition went through, Bank of America began pouring over Countrywide’s books, and it was in for a rude shock. It turned out that the problems were much worse than anyone had suspected. Many of Countrywide’s loans had gone to people who couldn’t afford them, and with the housing market in turmoil, a flood of foreclosures was coming its way.
Uh, some of us suspected. We saw the applications signed by blind people, the made up job classifications, the appraisals for burned out shells, and on and on and on.
Yeah, and I am going to keep blogging about it, too. Tis my blog, I can vent.
Most of us tend to blame the folks who file bankruptcy for borrowing too much money, more than they could afford.
When the folks who are lending you the money are telling you that you can afford the payments, that you can re-finance when the ARM option ends, that you would be stupid not to invest in real estate, it always goes up, you cannot lose, well, it is damn difficult to say no.
And now Bank of America is among Countrywide’s victims, having lost $40 billion, and counting.
Well, says I, too bad. What about the people forced into bankruptcy and foreclosure, who were hustled so Countrywide could make a buck?
And the idiots at Bank of America thought they would make more money by buying Countrywide.