Bank of America Bets on Countrywide

A scenario that many of the best financial theorists dreamed up over the last week amid speculation of a Countrywide bail out seems to be playing out in front of our eyes. Bank of America has taken a $2 billion equity stake is ailing Countrywide, the nation's number one mortgage lender. From Market Watch: SAN FRANCISCO (MarketWatch) — Bank of America Corp. Bank of america corporation, the Wall Street Journal reported on its Web site late Wednesday, citing people familiar with the situation. BofA will buy $2 billion worth of the mortgage company's preferred stock yielding 7.25%, which can be converted into common stock at $18 per share, the Journal reported.