And Mozilo, in the middle of a massive dumping of CFC shares, put out this news with some hilarious "vote of confidence" spin, in a desperate attempt to pop the shares and stop the run on his banks.
Bottom line: He needs cash and needs it bad. The deal is at $18 a share. And it puts BofA second in line to the bond holders after the bankruptcy filing as the shares are preferred.
Countrywide Financial Says Bank of America Made Equity Investment of $2 Billion Into Company
LOS ANGELES (AP) -- Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment in the company Wednesday as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street and the mortgage industry.
"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," Angelo R. Mozilo, Countrywide's chairman and chief executive, said in a statement.