Senator Suggests Bank of America Call Off Countrywide Bid

Washington, D.C.–Citing recent allegations that Countrywide Financial Corp.’s previous profits were the result of poor lending practices, U.S. Senator Charles Schumer advised Bank of America Corp. to reconsider its $4 billion offer for Countrywide, Bloomberg said.Speaking to the Senate, Schumer said mortgage lenders had increased fees for borrowers are already in bankruptcy and said Congress is pondering legislation to increase penalties on “bad-actor lenders.” Some investors have hypothesized that Bank of America may ask for better terms or call off its takeover of Countrywide because the housing market and Countrywide’s performance have fallen since talks began.Bank of America spokesman Scott Silvestri declined to comment.