COUNTRYWIDE GETS FED OK.Byline: Evan Pondel Staff Writer CALABASAS - Countrywide Credit Industries received approval Thursday from the U.S. Federal Reserve Board to become a bank and financial holding company, paving the way for its acquisition of Treasury Bank Ltd. The Calabasas-based mortgage-banking company will now proceed with plans to finalize its acquisition of Treasury Bank Ltd. via Countrywide's affiliate, Effinity Financial Corporation. The value of the deal has not been disclosed. Known primarily as mortgage lender, the Fed's approval enables Countrywide to expand its financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to its 3.5 million customers. ``We wanted to provide a full suite of banking products to our customer base,'' said Clarence G. Simmons III, president of Countrywide Financial Countrywide Financial Corporation (NYSE: CFC) is a diversified financial marketing and service holding company engaged primarily in residential mortgage banking and related businesses. Holding Corp. ``The bank just closes the loop.'' Countrywide will move Washington, D.C.-based Treasury Bank to Alexandria, Va., and change the name of the bank to Effinity some time after the 15-day holding period imposed by the U.S. Department of Justice ends. Instead of opening several branches of Effinity, Simmons said Countrywide will utilize its Internet platform to broaden the nationally chartered bank's outreach. Countrywide's acquisition stems from the Gramm-Leach-Bliley Act The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition of 1999, which eliminates many federal and state law barriers to affiliations among banks, insurance companies and other financial service providers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report issued by the Senate Banking Committee. After the act passed, Simmons said the company seized the opportunity to enter the banking industry Aug. 16, 2000, when Countrywide applied to become a bank and financial holding company. Countrywide first obtained a bank license from the Comptroller of the Currency Comptroller of the Currency A government official, appointed by the President of the United States, who keeps control over all national banks, and receives reports from the banks at least quarterly, to be published in newspapers. . The company then awaited approval from the Fed, Simmons said. While Countrywide occupies a unique niche as a leading mortgage lender, the augmentation AUGMENTATION, old English law. The name of a court erected by Henry VIII., which was invested with the power of determining suits and controversies relating to monasteries and abbey lands. of its services may threaten its dominance. ``The company needs to do a good job in not giving the impression that they are becoming a full service bank,'' said Mike Vinciquerra, equity research analyst from Florida-based Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . and Associates. Vinciquerra said most mid-sized banks get nine to 12 times forward earnings multiples, the price-earnings ratio Price-earnings ratio Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). on next year's forecasted earnings. But, mortgage companies such as Countrywide traditionally receive eight to 15 times forward earnings multiples. ``Countrywide is not going to be happy if they get stuck in the mud as a bank,'' Vinciquerra said. At Wednesday's close, Countrywide fell $1.27, or 2.8 percent, to $44.20. |
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