Global 1 Capital Markets: Market Update:Is Bank of America (BAC) shorting Countrywide (CFC)?

Our contacts on Wall St. seem to think that BAC is shorting CFC after they made the convertible preferred investment for $2.0 billion on Wed. BAC has the option to convert the convertible preferred stock into common stock at $18.00 per share.


BAC could and is probably locking in a sure profit on the trade and will convert if there is another party seeking to take over CFC.

CFC has experienced down side pressure since the announcement was made and has not traded up in intra day trading.