LOS ANGELES– The Federal Reserve will hold a hearing today for public comments on the proposed merger of Bank of America and Countrywide Financial Corporation. The merger, which must be approved by the Fed, would make BofA the nation's largest mortgage lender and the country's biggest bank.
Witnesses will include BofA executives, members of consumer and labor groups, an official with the California State Attorney General's Office and Rep. Maxine Waters (D-Calif.). Advocates maintain that that Countrywide has not been responsive enough to homeowners facing foreclosure and has been reluctant to structure reworked mortgage plans. Some consumer groups charge that excessive fees earned in the foreclosure process earn Countrywide more money, presenting a financial conflict to good-faith negotiations.
The California Reinvestment Coalition, a statewide coalition of some 250 nonprofits and public agencies that work together to increase access to credit for affordable housing sent a letter to Kenneth Lewis, Chairman & CEO of BofA, asking to "place an immediate moratorium on all foreclosures of Countrywide mortgages. And we are also asking the Bank to develop a plan to help Countrywide employees keep their jobs. In past mergers and operations, Bank of America has eliminated 30,000 jobs, which creates serious concerns regarding Countrywide employees."
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