Ken Lewis: Right on about mortgages

Not too long ago, there were a lot of rumors and press reports that Bank of America was interested in Countrywide. The AP quotes CEO Ken Lewis at the time: "We like the product, but we don't like the business." Now, after Bank of America made a $2 billion investment in the ailing mortgage giant, there are talks again that Bank of America will someday takeover the whole company. The agreement gives the bank an option to expand its stake and match any takeover offer. It may be that the business model looks better after the shakeout of the subprime sector and at a much lower valuation. Like others, Bank of America senses a historic opportunity. Its drive to expand its mortgage business may be boosted. 

For more:
- here's an article from AP