Bank of America Receives Federal Reserve Approval of Countrywide Purchase
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CHARLOTTE, N.C., June 5 /PRNewswire-FirstCall/ -- Bank of America Corporation today received approval from the Board of Governors of the Federal Reserve System to purchase Countrywide Financial Corporation. The transaction remains subject to the approval of Countrywide shareholders and other closing conditions. Closing is expected to occur in the third quarter.
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The purchase of Countrywide would make Bank of America the nation's leading mortgage lender and loan servicer and would mark an important step toward deepening the company's consumer real estate product offerings.
"This transaction represents a rare opportunity for Bank of America to significantly gain market share in the mortgage business, allowing it to expand in a cornerstone financial product," said Bank of America Chairman and Chief Executive Officer Kenneth D. Lewis.
Countrywide customers would eventually gain access to a broad set of consumer financial products such as credit cards and deposit services.
"Mortgages continue to be a key consumer product for Bank of America, serving as a driver for adding new customers and deepening relationships with existing ones," Lewis said. "Countrywide, through its systems, distribution network and servicing platform, will give Bank of America greater ability to meet customers' credit needs."
Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,500 ATMs and award-winning online banking with nearly 25 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
This press release contains forward-looking statements. The forward- looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States abroad may adversely affect the company's businesses and economic conditions as a whole; 5) changes in the interest rate environment and market liquidity reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Bank of America does not undertake to update forward- looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at http://www.sec.gov.
SOURCE Bank of America Corporation 06/05/2008 CONTACT: Investors, Kevin Stitt, +1-704-386-5667, or Lee McEntire +1-704-388-6780, or Leyla Pakzad, +1-704-386-2024, all of Bank of America; or Reporters, Scott Silvestri, Bank of America, +1-980-388-9921 email@example.com Photo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b AP Archive: http://photoarchive.ap.org PRN Photo Desk, firstname.lastname@example.org /Web site: http://www.bankofamerica.com (BAC)