Shares of Countrywide were up 25 cents, or 1.15%, to $22.07 after rising as high as $24.46 earlier in the day. Shares of Bank of America rose 27 cents to $51.92.
"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," Mozilo said in a statement late Wednesday.
Under the terms of the deal, Charlotte-based Bank of America acquired $2 billion in the form of non-voting, convertible preferred stock yielding 7.25% annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 a share, with certain restrictions.
Wonder how Ken Lewis & the BofA Board of Directors feel about that $2B now?
I like how people use the volatility of the stock market as an infallible economic indication. *sighs*
One more nail in Countrywide's coffin. More debt isn't the solution to too much debt.