Bank of America invests $2 billion in Countrywide
Bank of America invested $2 billion in Countrywide. The investment was made in non voting convertible preferred securities and is apparently not preliminary to an attempted takeover of Countrywide which has been long rumored.
"We hope this investment will be a step toward a return to a more normal liquidity in the mortgage markets," Bank of America Chief Executive Kenneth Lewis said in a statement. "In the current turmoil the stock market has been underestimating the value in Countrywide's operations and assets."
Read more at Marketwatch.