Countrywide bankruptcy just a rumor

January 14, 2008 6:03:07 PM PST
Bank of American chief executive Ken Lewis says fears that troubled mortgage lender Countrywide Financial has been on the verge of bankruptcy were due to unfounded Rumors.

Lewis, who spoke to the Delaware State Chamber of Commerce today, said he thinks it was a malicious rumor. He denied that government pressure to keep the nation's largest mortgage lender out of bankruptcy played any role in his company's decision to acquire Countrywide for $4.1 billion.

He says they had an impressive liquidity plan and backup lines in place.

Lewis also expressed a degree of surprise with the attention given what he said was a relatively small transaction for Bank of America.