Frank Statement on the Proposed Purchase of Countrywide Financial by Bank of America
Jan 11, 2008
Washington, DC (January 11, 2008) - Rep. Barney Frank (D-MA), chairman of the House Committee on Financial Services, today released the following statement regarding the proposed purchase of Countrywide Financial by Bank of America:
“The proposed purchase of Countrywide by Bank of America could be a positive development in the subprime crisis.
“In the meantime, I am urging Countrywide to take further actions that can help alleviate the crisis we are facing in the widespread loss of homes and the associated social and economic consequences. Specifically, Countrywide should aggressively participate in the steps proposed by Secretary Paulson to freeze interest rate resets. In addition, they should go further; for example, they can help more distressed homeowners by not limiting the interest rate freeze to people with weaker credit scores. The interest rate freeze should also be available to those who have worked hard, despite challenging economic circumstances, to keep their credit scores high.
“Secondly, legislation recently passed by the House would prevent the eviction of tenants in foreclosed properties. Countrywide should adopt this policy immediately. Such evictions unfairly penalize renters and leads to neighborhood deterioration.
“I am calling on Angelo Mozilo, who will be profiting from this transaction personally, to donate a substantial portion of the 0 million he has collected over the last several years to non-profits and other institutions that are helping us deal with the problem he helped to create.
“Finally, I have been encouraged by my initial conversations with Bank of America that they understand that a responsible financial institution can and should respond to the subprime crisis in a manner that is financially sound and socially constructive.”
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