Bank of America Purchase of Countrywide May Not Improve Corporate Behavior
Bank of America’s plans to buy Countrywide may not mean an improvement in the way borrowers and customers are treated. While Countrywide has its share of complaints and legal problems, Bank of America’s reputation is in question as well.
The Washington Post reports on the DC city government’s failure to seek damages for Bank of America’s role in the ongoing DC city government tax scandal.
In a nutshell, DC tax staff are accused of creating fake tax refunds, keeping the resulting payments. Much of the money passed through Bank of America, and the current suggestion is that Bank of America wasn’t careful to make sure the refund checks it was cashing were to real companies, allowing the scam to go on for years.
Additionally, Bank of America is being sued by Cleveland for contributing to a housing crisis through inappropriate subprime loans.
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