Wednesday, August 22, 2007
Whew!!! Bank of America bails out Countrywide's possible bankruptcy
In a late move today, Bank of America invested over $2 billion into flailing Countrywide Mortgage. Countrywide has notes on 1 out of every 7 households in the US! They are definitely in rough waters with all the foreclosures. I am sure BofA felt that saving this sinking ship is good for the whole mortgage industry and good for BofA. It also got a sweet deal from Countrywide which had few sources left for a bailout. Stock is trading after hours at $25 - BofA now has rights to buy the stock at $18! More details from MarketWatch.