*B of A buys into Countrywide

Yesterday the baseless speculation centered on Warren Buffett, but the WSJ, citing sources, just reported that the bank giant will purchase $2 billion worth of preferred Countrywide stock yielding 7.25 percent - and that can be converted into common stock at $18 a share. (The stock closed today at $21.82.) That will probably provide additional comfort to those concerned about Countrywide's financial situation. Earlier today, Bank of America and three other major U.S. banks disclosed that they had borrowed $500 million each from the Fed's discount window - a largely symbolic move that's aimed at calming the financial markets and ultimately easing the credit crunch. (AP)

*IndyMac resumes "jumbo" loans: Those are mortgages for people with good credit, but that are too big for government-sponsored entities like Fannie Mae and Freddie Mac. The Pasadena-based mortgage lender had temporarily stopped offering jumbo loans because of all the tumult in the credit market. (AP)

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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