Banking, finance, and taxes
Countrywide Financial: Bank of America's Deal Of The Century
Published:
It is too good to be true. Bank of America (BAC) put $ 2 billion into Countrywide Financial (CFC) by taking convertible preferred with an $18 a share strike price and a 7.25% coupon.
BAC was able to do this on a day when CFC closed a bit over $21 and then the mortgage bank’s shares moved up another 22% after hours. No details of the agreement were filed with the SEC at the time of this writing. It will be interesting to see exactly what rights the preferred shares have.
How much risk for BAC? Very little. The bank should have been able to handle due diligence without Herculean effort because it knows the industry as well as any other large financial institution in the US.
Nice work if you can find it.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
