Countrywide - $13.5 Billion is not enough

Countrywide (CFC) is reportedly seeking another investment.

In mid-August, the company had tapped its credit lines for $11.5 billion. Less than a week later, they announced a $2 billion dollar investment from Bank of America (BAC).

These developments have not been very comforting to their two largest investors, who recently significantly reduced their stakes. It also can't be very comforting for their customers, who may be perpetuating the liquidity problems by pulling their deposits.

If Countrywide does get another investment, Bank of America will get the booby prize of pre-emptive rights and anti-dilution adjustments. Perhaps fortunately, they are restricted by the terms of their investment from acquiring additional ownership outside of the adjustments.