BofA CEO denies takeover interest

2 February 2007

Bank of America (BofA)'s chief executive Ken Lewis has said that there is little chance of his bank taking over a smaller rival in the near future, cast doubt over a rumored deal with mortgage lender Countrywide.

Speaking at an investors' conference this week, Mr Lewis said that joint ventures has not been a success for the bank in the past, making the prospect of attempting more unattractive.

He also stressed that BofA was committed to organic growth rather than growth through acquisitions.

"We've never done one successfully," Mr Lewis said, commenting on past joint ventures.

"Our strategy is organic growth."

Mr Lewis cast further serious doubt on any deal with Countrywide by denying that BofA was at all interested in the mortgage lending business, saying that although the product was attractive, the mortgage business itself was not, making selling mortgages through existing bank-based operations a more attractive option.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development