The first official glimpse inside Bank of America's controversial Countrywide Financial acquisition provides a more upbeat outlook than originally expected. The $2.5 billion deal, announced in January, will add to earnings immediately rather than next year, the bank said Monday. The bank also said it expects $900 million in savings, up more than one-third from initial estimates. “Countrywide is on track and adding to the profit,” Bank of America CEO Ken Lewis said Monday during a conference call with analysts. Buying Countrywide, the nation's largest mortgage lender, vaults Bank of America to a leading role in home lending. The bank, already huge in consumer services, could add new customers and sell more to existing ones. And the deal rescued a troubled company. But it comes a year into a mortgage meltdown fueled by lax lending that led to waves of foreclosures. Countrywide was a key player in the subprime markets. The company faces lawsuits in North Carolina and nationwide from borrowers claiming lending abuses and poor loan servicing, as well as federal and state investigations. The acquisition means Bank of America shareholders could end up footing the bill for Countrywide problems. Joe Price, the bank's chief financial officer, said Monday that it has worked with outside lawyers and others to assess the extent of potential legal claims. They have concluded the exposure is “manageable,” he said. “I was really surprised,” anal ...
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