BofA invests in Countrywide.

[BKTango]

Bank of America invests $2 billion in Countrywide
August 23, 2007 - Posted at 12:00 a.m.

LOS ANGELES (AP) - Countrywide Financial Corp. said Wednesday that Bank of America Corp. has made an equity investment of $2 billion in the company, a deal that comes as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
The transaction was completed and funded Wednesday, Countrywide said.

"Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.

"Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," he said.

Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.


Interesting....

[ameliabedilia]

No wonder I had two spam emails from them today!

[SinkingFast]

I am beginning to wonder if BoA is gonna own the world of banking.

The other day, we went to the bank to take care of rearranging the girls' accts. They weren't 18 yet when the accts were opened so they couldn't be the Primary on their accts and they couldn't have Debit Cards with their names on them.

Our bank just bought another smaller, yet sizeable Southern Bank company. This is the 3rd or 4th "merger" they've been thru in the 2 years we've been with this bank.

In casual conversation I asked, "You aren't getting so big now that BoA or Citi or Chase is gonna come after you, are you??" And the gal tells me it'll probably be BoA. That our bank had already sold off their CC's to BoA.

Well that's just GREAT!! We only Discharged a ton of debt against BoA on 4-5 different CC's.

I think we need to be looking for a new bank to do business with.

[JRScott]

It's most likely that BoA was already a major investor in Countrywide and they stand to lose big if Countrywide goes under, so they are propping them up.

[BassBoy]

Part of me hopes CW falls flat. These types of lenders (I call them predators) have no business doing business (at least that's my opinion).

Let's not forget that CW has also pulled $8MM (I think that was the amount) from it's equity. This lender is in deep Doo-Doo, so if anyone reads this thread, hopefully, they will avoid CW all together.

On a side note, I have been following the foreclosure dilemma here in Northeast Ohio and it is my understanding that for the next couple of years, it's going to be tough on lenders, buyers and sellers......so......now is not a good time to buy or sell.