Bank of America’s (BAC) horrific decision to bail out and then buy mortgage-lender Countrywide (CFC) continues to reverberate. The NY Post reports that BCA may need to take a $12 billion write-off to flush all the crap that “sun-drenched Angelo Mozillo’s” Countrywide is bringing aboard.
The decision to buy Mozillo’s bomb has also cost Bank of America its title as the biggest swinging bank in America (by market cap). That title now belongs to Jamie Dimon’s JP Morgan (JPM).
We don’t mean to be rude, but we’re just not into seeing CEOs who preside over moronic acquisitions and $12 billion losses keep their jobs. Investors deserve a fresh start, and Bank of America’s Ken Lewis should follow Wachovia’s Ken Thompson, Citi’s Chuck Prince, and Merrill’s Stan O’Neal out the door.