A scenario that many of the best financial theorists dreamed up over the last week amid speculation of a Countrywide bail out seems to be playing out in front of our eyes. Bank of America has taken a $2 billion equity stake is ailing Countrywide, the nation’s number one mortgage lender. From Market Watch:
SAN FRANCISCO (MarketWatch) — Bank of America Corp. Bank of america corporation, the Wall Street Journal reported on its Web site late Wednesday, citing people familiar with the situation. BofA will buy $2 billion worth of the mortgage company’s preferred stock yielding 7.25%, which can be converted into common stock at $18 per share, the Journal reported.
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August 23, 2007 at 11:51 am
[...] « Bank of America Bets on Countrywide [...]
October 5, 2007 at 5:28 pm
[...] does dump a ton of shares via this plan next week the stock could be pressured below $18, which ...