BANK OF AMERICA AND COUNTRYWIDE
Bank of America has taken what is the equivalent of a 16% stake in Countrywide Financial, the nation's largest mortgage lender. The size of the investment is $2 billion.
Though the deal doesn't give Countrywide automatic access to Bank of America's capital, it is likely to persuade investors that the company has a powerful ally ready to help in any crisis. And it removes a major source of uncertainty hanging over the nation's credit markets at a time when investor confidence has been shaky.
This is very, very good news for the shaky mortgage market.
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