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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Tags: BACCWFC
53Comments
Oct 24, 2013 2:32PM
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If nothing else has pissed you off about this administration this might get to you. The US has entered into a contract with a real estate firm to sell 56 buildings that currently house U.S. Post Offices. The government has decided it no longer needs these buildings, most of which are located on prime land in towns and cities across the country. The sale of these properties will fetch about $19 billion. A regular real estate commission will be paid to the company that was given the exclusive listing for handling the sales. That company is CRI and it belongs to a man named Richard Blum. Richard Blum is the husband of Senator Dianne Feinstein.   Senator Feinstein and her husband stand to make a fortune (est. at between $950 million and $1.1 billion!!) from these transactions. His company is the sole govt real estate agent on the sale. CRI will be making a minimum of 3% and as much as 6% commission on each and every sale.

All of the properties that are being sold are all fully paid for. They were purchased with U.S. taxpayers’ dollars. The U.S.P.S. is allowed free and c lea r, tax exempt use. The only cost to keep them open is the cost to actually keep the doors open and the heat and lights on. The United States Postal Service doesn't even have to pay county property taxes on these subject properties. Would you put your house in foreclosure just because you couldn't afford to pay the electric bill? Well, the folks in Washington have given the Post Office the OK to do it! Worse yet, most of the net proceeds of the sales will go back to the U.S.P.S, an organization that is so poorly managed that they have lost $117 billion dollars in the past 10 years! No one in the mainstream media is even raising an eyebrow over the conflict of interest and on the possibility of corruption on the sale of billions of dollars’ worth of public assets. How does a U.S. Senator from San Francisco manage to get away with organizing and lobbying such a sweet deal? Has our government become so elitist that they have no fear of oversight?
Oct 24, 2013 1:33PM
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Yep, invest in banker crooks, liars and robbers and buy Bank of America and JP Morgan.
Oct 24, 2013 3:04PM
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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 2:31PM
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    One  to forward!
    Governors of 35 states have filed suit against the  Federal Government for imposing

unlawful burdens upon them. It only takes 38 (of the 50) States to convene a Constitutional

Convention.
    This will  take less than thirty seconds to read. If you agree, please pass it  on.

    This is an idea that we should address.
    
    For too long we have  been too complacent about the workings of Congress.  The latest is

to  exempt themselves from the Healthcare Reform that passed ... in all of its  forms.

Somehow, that doesn't seem logical. We do not have an elite that is  above the law. I truly

don't care if they are Democrat, Republican,  Independent or whatever . The self-serving

must stop.
    
    If each person  that receives this will forward it on to 15 people, in three days, most 

people in The United States of America will have the message. This is one  proposal that

really should be passed around.

 

    Proposed 28th Amendment  to the United States Constitution: "Congress shall make no law

that applies  to the citizens of the United States that does not apply equally to the 

Senators and/or Representatives; and, Congress shall make no law that  applies to the

Senators and/or Representatives that does not apply equally  to the citizens of the United

States ..."
    
    You are one of my 15+.590 Don’t bother sending this to the ones that we have contacted.


Oct 24, 2013 2:20PM
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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
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"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
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 Bank of America, the worst!!!!  EVER.
Oct 24, 2013 2:59PM
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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
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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
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 To Big To FAIL / To Big To JAIL !     DIE BANK OF AMERICA DIE ! ! !
Oct 25, 2013 1:08AM
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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
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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
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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
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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
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GEEZER.....Don't believe all these corrupt e-mails your buddies send you...Go out smell the weeds.
Oct 24, 2013 3:08PM
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Where's VineYard, when you need him...
Oct 24, 2013 5:03PM
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There`s lots of great stocks to pick from.Certainly not BAC.
Oct 25, 2013 12:06AM
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BAC is a BIG BUY ! BUY ! BUY !!!!!!!!!!$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
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