The Federal Reserve said Thursday that it plans to take the unusual step of holding public hearings on Bank of America Corp.’s proposed acquisition of troubled lender Countrywide Financial Corp. for about $4 billion in stock.
The Fed said the hearings, to be held in Los Angeles and Chicago, would consider whether the $4 billion deal will benefit the public. The Chicago hearing is April 22 at the Federal Reserve Bank of Chicago.
Consumer advocates are likely to use the public events as a chance to pressure Bank of America to be more aggressive in helping borrowers who are in trouble on their home loans. Countrywide has been widely criticized for not being responsive enough to homeowners who are having mortgage difficulties.
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Page compiled from staff, wire reports
