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Bank of America Sends Cash to Countrywide

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Bank of America Sends Cash to Countrywide

Economy

Bank of America Sends Cash to Countrywide

Bank of America Sends Cash to Countrywide

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  • <iframe src="https://www.npr.org/player/embed/13886248/13886231" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
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Bank of America says that it will invest $2 billion in Countrywide Financial, the largest home mortgage company. Countrywide has been struggling to raise finances. Last week, the lender was forced to draw on an $11.5 billion line of credit from a group of banks.

That show of weakness sent financial markets plummeting. Countrywide's shares have fallen more than 50 percent in the last six months. So the cash injection from Bank of America's is a much-needed vote of confidence for the company.