Thursday, August 23, 2007
Bank of America invested $2 billion in troubled mortgage company Countrywide Financial in the form of convertible preferred shares which, if converted, would give Bank of America a 16-17% stake in Countrywide. Countrywide is the largest mortgage company, originating or funding about one out of six mortgages. Countrywide disclosed it has commitments to repurchase some of the mortgages it sold to investors if their terms were modified to help homeowners. NYTimes, Assurances on Buybacks Cost a Lender; WSJ, Bank of America Invests $2 Billion In Countrywide.