(From commenter Gary at Calculated Risk)
Bank of America's Countrywide Deal Loses $858 Million (Update1)
By Caroline Salas
Nov. 20 (Bloomberg) -- Bank of America Corp.'s $2 billion investment in Countrywide Financial Corp., the biggest U.S. mortgage lender, has lost almost half its paper value as Countrywide fell amid speculation it may file for bankruptcy.
Charlotte, North Carolina-based Bank of America, the biggest U.S. bank by market capitalization, made the preferred-stock investment in August to help bail out the lender amid the global credit rout that cut off its access to short-term financing.
Bank of America has the right to convert the preferred stock to common shares at $18 each. If the preferred shares had been swapped for common stock at the mortgage lender's high of $24.46 on Aug. 23, the first day of trading after the deal was announced, Bank of America would have made a $700 million paper profit. Countrywide also agreed to pay dividends of 7.25 percent on the preferred shares.
Instead, Countrywide's shares have tumbled, leaving Bank of America's investment down $858 million, data compiled by Bloomberg show. Countrywide fell 29 cents to $10.28 today in New York Stock Exchange composite trading as the lender denied speculation it will seek protection from its creditors. The shares have lost about 76 percent this year.
Scott Silvestri, spokesman for Bank of America, declined to comment. Bank of America's shares fell 5 cents to $42.77 in New York Stock Exchange trading today. Bank of America shares are down about 20 percent this year.
Tuesday, November 20, 2007
Subscribe to:
Post Comments (Atom)
Posts
1 comment:
Antidepressant generic and brand name drugs
Wellbutrin generic drug (Bupropion), an antidepressant (mood elevator), is used to treat depression. Bupropion (Zyban) is used to help people stop smoking. This medication is sometimes prescribed for other uses; ask your doctor or pharmacist for more information. Order discount generic Wellbutrin Bupropion pharmacy online
Zoloft generic drug (Sertraline) is used to treat depression, panic attacks, obsessive compulsive disOrder discounts (OCD), and post-traumatic stress disOrder discount (PTSD). This medication works by helping to restore the balance of certain natural chemicals in the brain. Order discount generic or brand Zoloft Sertraline pharmacy online.
Prozac brand drug (Fluoxetine) is used to treat depression, bulimia (an eating disOrder discount), obsessive compulsive disOrder discounts (OCD), and severe symptoms of premenstrual syndrome (premenstrual dysphoric disOrder discount-PMDD). This medication works by helping to restore the balance of certain natural chemicals in the brain. Order discount brand Prozac pharmacy online.
Paxil generic drug (Paroxetine) is used to treat depression, panic attacks, obsessive compulsive disOrder discounts (OCD), social anxiety disOrder discount (social phobia), and generalized anxiety disOrder discount. This medication works by helping to restore the balance of certain natural chemicals in the brain. Order discount generic Paxil Paroxetine pharmacy online.
Lexapro generic drug (Escitalopram) is used to treat depression. Escitalopram is in a class of antidepressants (mood elevators) called selective serotonin reuptake inhibitors (SSRIs). It works by increasing the amount of serotonin, a natural substance in the brain that helps maintain mental balance. Order discount generic Lexapro Escitalopram pharmacy online.
Fluoxetine generic prozac drug is used to treat depression, bulimia (an eating disOrder discount), obsessive compulsive disOrder discounts (OCD), and severe symptoms of premenstrual syndrome (premenstrual dysphoric disOrder discount-PMDD). This medication works by helping to restore the balance of certain natural chemicals in the brain. Order discount Fluoxetine generic prozac pharmacy online.
Brand Elavil drug (Amitriptyline), an antidepressant (mood elevator), is used to treat depression. Order discount brand Elavil pharmacy online.
Generic Effexor drug is a potent inhibitor of the reuptake of serotonin and norepinephrine-two neurotransmitters, thought to play important roles in the pathophysiology of depression. Correcting the imbalance of these two chemicals may help relieve symptoms of depression. Order discount generic Effexor pharmacy online.
Post a Comment