Wall Street Addict

Wall Street extended its rally in early trading Thursday after a $2 billion capital infusion into Countrywide Financial Corp. relieved investors concerned about widening credit problems.
Bank of America Corp. announced late Wednesday it will invest the money into the nation's largest mortgage lender to help it better weather problems with defaulting subprime loans. The investment was seen as a way to not only prop up Countrywide, but also prevent any further losses at the mortgage lender from hurting the underlying economy.
The move was reaassuring to investors, although a number of major banks and home lenders continue to face difficulties. On Wednesday, Lehman Brothers Holdings Inc. said it would close its BNC Mortgage unit and slash 1,200 jobs; HSBC Holdings PLC and Accredited Home Lenders Holding Co. also said they would eliminate jobs.

Labels: BAC, CFC, LEH