Point of Clarification: Bank of America bought $2 billion worth of a prefferred convertible shares. If memory serves, there is something else in the deal that says that if CFC goes under, they get first dibs on their mortgage servicing biz. (A still very, very profitable arm of this company.) Its also a purchase of a new issue of stock. This is relavent as it helps make sure they have adequate liquidity. All of the money will go straight to CFC’s checking account. (So to speak!) There are more relavent details that I can’t seem to find on the net right now. (And its time for sleep!) But I thought I would point out this was not just a regular market purchase; but, much more multi-faceted than that.
So you don’t think I’m a biased CFC or BAC employee I’ll post my favorite joke that was recently found on the doors of several Countrywide offices….
***Warning: Angelo Mozillo is Orange and Dangerous!***
