Jan
11th
Fri
11th
BOA and Countrywide - Oh, I bet the Feds will let this slide…
On potential obstacle to the deal is a Federal law which prohibits a bank-holding company from controlling more than 10% of U.S. deposits after acquiring another bank.
But the law includes an obscure caveat: The 10% limit doesn’t apply to federally chartered thrifts, meaning a bank-holding company may control more than 10% of deposits in the U.S. following a thrift acquisition. Since a Countrywide subsidiary called Countrywide Bank is a federally insured thrift, that may give…
