Dizard on Countrywide, BofA, and hazy recollections

By: HousingWire staff
May 13, 2008

The Financial Times’ John Dizard writes Tuesday that the Countrywide/Bank of American marriage that’s been the subject of quite a bit of hand-wringing recently will go through, despite grandstanding by Congressional Democrats:

It’s too early for pheasant shooting in the Washington area, but for those politicians with a sporting disposition, it’s Angelo Mozilo season … Now there’s a barrage of leaks, reports, whispers and so on suggesting that the acquisition of Countrywide by Bank of America will come unravelled, or that somehow the Countrywide bank can be “saved” while the holding company is flushed away with its bondholders.

I don’t believe that. I think the deal will be done, possibly at a lower price.

Dizard, BTW, concludes that the demonization of Mozilo by anti-mortgage consumer activists is because he’s a convenient target — he says that Mozilo was doing what Congress, regulators and (gasp!) consumer advocates wanted him to do: raise homeownership rates during what at the time was a historic boom that few saw an end to.

Funny how time distorts what once was reality, isn’t it? Dizard may be writing across the pond, but from our view, his recollection is spot-on.