I just shorted more Countrywide at 25.95 in the after hours on the news that B of A is making a $2 billion preferred stock investment.
Yes, it helps the short-term liquidity situation, but the terms are extortionate. A 7.25% coupon, leaving CFC no profit margin on its mortgages (what are they going to do, start writing prime mortgages at 8%?), and an $18 conversion price. That's what's known as "dilutive." Bank of America borrows from the Fed's new free money program, and pockets the difference and a free call option with an $18 strike! I don't see how that's good for the existing stockholders.
I could be wrong.