Thursday, June 5, 2008
Lifeline for distressed lender Countrywide.
US banking giant, Bank of America, is free to take over the country's biggest mortgage lender, Countrywide Financial, after the move got regulatory approval. The US Federal Reserve said, after looking at the case for and against the $4bn (£2.04bn) purchase, that it could go ahead. Analysts say the deal is a lifeline for distressed lender Countrywide. The firm - a key participant in the sub-prime sector - had been hit by the severe downturn in the housing market. In August 2007, Bank of America had invested $2bn in Countrywide.