Results 1 to 3 of 3
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
Hybrid View
-
05-15-2008, 11:54 AM #1
- Join Date
- May 2007
- Location
- South West Florida (Behind friendly lines but still in Occupied Territory)
- Posts
- 117,696
BofA Expects Higher Home Equity Loan Losses
BofA Expects Higher Home Equity Loan Losses
MoneyNews
Wednesday, May 14, 2008
Bank of America Corp (BAC.N: Quote, Profile, Research) on Tuesday increased its forecast for expected losses from home equity loans, citing the deteriorating U.S. housing market.
Liam McGee, president of global consumer and small business banking, offered his forecast as the second-largest U.S. bank prepares to complete its purchase of Countrywide Financial Corp (CFC.N: Quote, Profile, Research), the nation's largest mortgage lender, in the third quarter.
"Losses have risen rapidly in the past two quarters as the housing markets continue to worsen," McGee said at a UBS global financial services conference in New York. "The 1.71 percent loss rate of the first quarter will go higher in the near term, and is expected to exceed our earlier range of 2 to 2.5 percent."
McGee acknowledged that critics have questioned the rationale of the Countrywide purchase, valued at about $4 billion when it was announced in January. He said the bank will continue to "look hard at Countrywide's processes, assets and cash flows."
David Hendler, an analyst at CreditSights Inc, wrote in a report that McGee's assessment of Countrywide suggests that the bank "was not ruling out a change in the offer price."
Bank of America agreed to issue 0.1822 of a share for each Countrywide share, valuing Countrywide at about $6.82 per share, based on Monday's closing price.
In afternoon trading, Countrywide shares rose 23 cents to $5.02, while Bank of America shares fell 70 cents to $36.74.
http://moneynews.newsmax.com/money/arch ... .cfm?s=mncJoin our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
BACKWARDS WORLD: Illegal alien encampments treated like royalty...
05-15-2024, 09:35 PM in General Discussion