@Revolution:Global Business News

New Economy, Leadership, Entrepreneurship, Management, Global Business

Bank of America Bails Out Countrywide

Posted by iBlog on August 23, 2007

Bank of America knows when it’s time to buy.

The Charlotte, N.C.-based bank is making a $2 billion equity investment in the beleaguered Countrywide Financial (nyse: CFCnews people ), the companies said Wednesday evening.

Bank of America (nyse: BACnews people ) will purchase $2 billion worth of preferred Countrywide stock yielding 7.3%, and that can be converted into common stock at $18 per share, giving the mortgage lender a much-needed cash infusion amid a crippling credit crunch.

Read the full article in BusinessWeek.com

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