Although we have not received a direct reply to our request that Bank of America sever all ties with ACORN and its affiliates, McClatchy newspapers reports:
In a statement, the bank said that it doesn’t condone the actions on the videos and that it is reviewing its work with ACORN.
Bank of America also said it and other banks have allowed ACORN to help tens of thousands of homeowners facing foreclosure.
“Overall, we believe our investments have been leveraged to further the company’s commitments and benefit the country,” the bank said in its statement.
You would think with all the problems facing embattled CEO Ken Lewis, Bank of America would run, not walk, away from the ACORN imbroglio. The “statement” cited by McClatchy does not appear on the Bank of America website, or anywhere else on the web. Presumably, it was provided to McClatchy in response to its request for comment.
Lewis faces investigations into the bank by Congress, the Securities and Exchange Commission, and New York Attorney General Andrew Cuomo. Lewis faces questions about his role in misleading investors about year-end bonuses paid to Merrill Lynch executives before Bank of America purchased the firm late last year.
Bank of America’s purported concern for “homeowners facing foreclosure” is interesting. I wonder how many them were prequalified by ACORN for subprime Bank of America mortgages that they now cannot afford.
Flaherty: ‘Deeper Scandal’ is ACORN Finances (video: CNN/Dobbs)
photo: Ken Lewis (AP/Wide World)