Potential Investigation Calls Bank of America’s Plan to Employ Countrywide Exec Into Question
- Mar 10, 2008
Charlotte, N.C.–Bank of America’s offer to appoint a top Countrywide executive to oversee mortgage business is likely to come under fire this week as reports that the Federal Bureau of Investigation is in the early stages of investigating Countrywide are released, according to the Financial Times.Countrywide president and chief operating officer David Sambol is scheduled to assume mortgage-division duties once Charlotte, N.C.-based Bank of America’s $4 billion takeover of Countrywide is complete.Sen. Chuck Schumer, D-N.Y., has asked Bank of America to reassess the offer because he feels the mortgage lender’s business model was a “main contributor” to the mortgage crisis.This weekend, both The Wall Street Journal and the New York Times reported that Countrywide was one of several lenders that the F.B.I. was investigating.Sixteen companies are being investigated for mortgage-related fraud, according to the F.B.I., which has not named any of the companies, according to the Financial Times.