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Fed approves Bank of America takeover.

Global Banking News-6 June 2008-Fed approves Bank of America takeover(C)2008 ENPublishing -

Global Banking News - 06 June 2008(c)2005 - Electronic News Publishing -

The Federal Reserve Board has approved the takeover of Countrywide Financial Corp (NYSE: CFC) by Bank of America (NYSE: BAC).

Bank of America has assets of USD1.7tn and is believed to be the largest depository institution in the US. Countrywide Financial Corp has assets of about USD199bn, and is the 17th largest bank in the country.

According to the Fed, the merged company would control approximately 10.91% of insured deposits in the United States. It said, 'although Bank of America would become the largest mortgage loan servicer in the United States on consummation of the proposal, the mortgage servicing market would remain unconcentrated.'

Further, the Fed also observed that the merger would 'not likely have a significant adverse effect on competition in any relevant banking market.'

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Publication:Global Banking News (GBN)
Date:Jun 6, 2008
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