Should you bail on Bank of America?

Shares of the financial giant are still reeling from the news that the company is liable for Countrywide’s 'Hustle' loan program.

By Motley Fool Investor Beat Oct 24, 2013 1:13PM
Shares of Bank of America (BAC) are feeling the pinch after a jury found the company liable for Countrywide's "Hustle" loan program.

According to Motley Fool Analyst Matt “Young Money” Koppenheffer, Bank of America is left holding the bag in this ruling, since it acquired Countrywide after the company had been pushing out bad loans.
However, Matt’s not too worried about the effect of the ruling on Bank of America, since the bank will only have to pay a maximum of under $900 million; that’s not much compared to Bank of America’s $8.5 billion settlement currently in court. In fact, Matt still thinks Bank of America and its big bank peers are solid buys.Bank of America Corp. signage is displayed outside of a branch in San Francisco, California David Paul Morris/Bloomberg via Getty Images

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Oct 24, 2013 1:33PM
Yep, invest in banker crooks, liars and robbers and buy Bank of America and JP Morgan.
Oct 24, 2013 3:04PM
A fine is not enough. What they did is not just an error or a small infraction like a traffic ticket. Why aren't Countrywide's old CEO Mosillo and others in jail? And why isn't bank executives' ill gotten personal wealth taken away. He's probably sunning on a beach in the Caribbean. Jail and personal wealth confiscation, then we'd see bankers change their arrogant tune.
Oct 24, 2013 2:20PM
Thought it was always the law that if you buy a company you buy the liabilities that come with it.  The only thing surprising is that these crooks might actually be subject to the law.  Guess it just means the price for buying their way out of it will go up a bit.
Oct 24, 2013 2:56PM
"Thought it was always the law that if you buy a company you buy the liabilities that come with it."

It is. But when you convince yourself you are Too Big To Fail and take part in a conspiracy to wipe out your competition, be careful what you wish for. Seems to me the REAL crime here is the Bank of America didn't employ anyone with Credit Diligence and Quality Assurance skills. In fact, they fired all of us in 1999-2000. This is a fitting end to this bank's terrorism.
Oct 24, 2013 3:38PM
 Bank of America, the worst!!!!  EVER.
Oct 24, 2013 2:59PM
You should SERIOUSLY consider the adverse impact of financial stocks as they come falling apart like this Albatross. they lost the lawsuit because they stopped being an institution YEARS ago and set off on a corruption quest. We don't need big banks, we need better regulation and supervision throughout the financial sector. 
Oct 24, 2013 3:04PM
Old Geezer--you may need to check your source because this is an old chestnut that has been making its way around the internet--but your "facts" aren't correct.  Check it out with reliable sources--and I don't mean the right wing nut press--one of my friends sent this story to me--and I sent what I had found through my investigation back  . . . it's a lot different.  A lot!  What you wish isn't always true.
Oct 24, 2013 5:17PM
Oct 24, 2013 4:48PM
 To Big To FAIL / To Big To JAIL !     DIE BANK OF AMERICA DIE ! ! !
Oct 25, 2013 1:08AM
Bank of America stock reeling?  Less than 1% of a stock price decline does not "reel" to me.  It has a better stockscouter rating than General Electric.  Reeling?  Not today, nor tomorrow.
Oct 25, 2013 12:49AM

Don't forget that BAC was told in 2006 by the Democratic Congress to do everything possible to put people in homes regardless if they can afford them.  This started the real-estate meltdown.


Someday the people may wakeup to see how our government operates.  This government sucks.  

Oct 24, 2013 9:43PM
With the hearings today on the A C A why are there no detailed stories or reporting  on a law that effects ALL AMERICANS ?
Oct 24, 2013 8:48PM
duah - - Bank of America = bankYO'Bummer propped up POS ...surprised he didn't sell it to ChiComs just like he and cronies did with GM - - sold one of America's manufacturing icons straight down the river.  WAKE UP AMERICA WE'VE BEEN HOSED OVER AND OVER AGAIN BY THE SOCIALIST, COMMUNIST, SELL YOUR **** DOWN THE RIVER BLACK HOUSE
Oct 24, 2013 2:58PM
GEEZER.....Don't believe all these corrupt e-mails your buddies send you...Go out smell the weeds.
Oct 24, 2013 3:08PM
Where's VineYard, when you need him...
Oct 24, 2013 5:03PM
There`s lots of great stocks to pick from.Certainly not BAC.
Oct 25, 2013 12:06AM
BAC is a BIG BUY ! BUY ! BUY !!!!!!!!!!$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Oct 24, 2013 8:53PM

The Government and people like you better get off BOA's back !!  If BOA puts COUNTRYWIDE in BANKRUPTCY , everybody loses !!  This case will be appealed for years, and BOA will win in the end !!

Who will rely on a New York Federal Jury ???   NOONE !!!  One JURY VERDICT means nothing !!

I would not blame all the BIG BANKS, if they never made another MORTGAGE LOAN !!  You just can't deal with a bunch of Obama Loving DEADBEATS !!

Oct 26, 2013 12:48PM

Hey . . . Old Geezer--and I assume YOU ARE--did it ever dawn on you that: had we NOT bought into the deregulation BS of Reagan, had we NOT engaged in two totally meaningless and misguided

wars at immense cost to the economy--wars that sought bin Laden where he WASN'T--BTW, wasn't it OBAMA who eventually did find and kill him--had we NOT let B of A and Goldman write the rules for CDO's during the mortgage debacle--even letting the man who used to RUN Goldman have carte blanche to "save" the economy--and I note that he saved Goldman and his pension while letting his 2 biggest competitors for investment banking underwritings go under--perhaps we wouldn't have run up such a huge debt, transferred so much money into the hands of so few--and proven by doing so that crime pays very, very well.  It has long been the desire of the right wing to create a plutocracy--and they have done that very well.  A cabal of angry old white men who are still upset that slavery was abolished, women got the vote and one can no longer beat women and children with a stick no bigger than a thumb have taken over the Republican Party and keep trying to throw civilization into reverse instead of moving forward.  Face it--the RIGHT isn't.  Perhaps you are spending too much time looking for blame where it isn't and are unwilling to put the blame where it belongs.  Try looking through the windshield instead of the rear view mirror.


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