Texas Governor Rick Perry disclosed on Tuesday that Bank of America has failed to honor its commitment to the state of Texas Enterprise Fund and will have to repay $8.45 million of the $20 million that Countrywide, a Bank of America subsidiary, received to create new jobs at its Fort Worth loan-servicing center.
Under the agreement, Countrywide was to have created a total of 7,500 jobs by the beginning of 2010, however, by the end of 2008, Countrywide created just 3,887 according to a March associated press article. At the time, the governor’s office insisted that the company was in compliance with the agreement stating that Bank of America had accumulated “surplus credits” by creating more jobs than targeted in previous years.
Texas’s announcement on Tuesday did not specify why the fund had changed course and now is demanding that Bank of America repay the incentive money given to Countrywide.
In the same announcement, Governor Perry disclosed that Gulfstream must repay the fund $375,000 for not meeting expansion targets on its Dallas campus.
