Banking Law

I was traveling the last few days, unable to blog, and blissfully unaware of the really important stuff happening in the wide world of banking law. I returned home today to find this article from Seeking Alpha, (h/t Housing Wire), breathlessly entitled "Countrywide Buyout Deal Greased From The Start." 

Apparently, there?s been shock to, and a slight amount of spit-up in the mouths of, certain observers of the Bank America buyout of Countrywide caused by the suspicion that the federal banking regulators might have been consulted prior to the public announcement of the acquisition. I fail to see any cause for shock. If Bank of America and Countrywide hadn?t consulted their respective regulators in advance on a deal of this magnitude and importance to the banking system, they would have been blithering idiots. Some bloggers are making that case based upon their analysis of the financial aspects of the deal, but as for the regulators "greasing the skids," with certain bloggers alleging that "smart money" says that the Fed or the OCC or the OTS, or any combination of the foregoing, "begged" or "cajoled" Bank of America to purchase Countrywide, that's taking a leap into the land where only Oliver Stone and similar wing nuts love to tread. I think that the acquisition is favored by the regulators, but I doubt that they twisted anyone?s arm or sweet talked Bank of America into doing this deal. 

There?s enough bizarre behavior in the banking world without adding pure speculation about regulatory "conspiracies" to the mix. Leave the outrageous insinuations to the professional nuts, like the authors of this blog. 

On the other hand, if there?s anything to the unusual volume of call activity on Countrywide stock, and somebody leaked information on the pending acquisition, then everyone involved ought to be nailed to the wall. People who leak information in such a manner and profit by it, and don?t even have the courtesy to share it with Bank Lawyer's Blog, need to be punished severely for their unacceptable behavior.