Not such a bad deal for Bank Of America now, is it?

Countrywide Financial Corp (CFC.N) shares on Thursday fell below the $18 price at which Bank of America Corp (BAC.N) may convert its $2 billion investment into common stock.

It was the first time the shares have dipped that low since the infusion was announced two weeks ago.

Bank of America, the second-largest U.S. bank, on August 22 bought preferred stock yielding 7.25 percent, convertible into common stock at $18.

…

“Countrywide has been criticized for adding to staff in a declining market, and the job cuts are what they should be doing as the mortgage market contracts significantly,” said Blake Howells, who helps invest $2.6 billion at Beckers Capital Management in Portland, Oregon, which owns Countrywide shares.

Shares of Countrywide fell as low as $17.95 in morning trading. They closed down 33 cents, or 1.8 percent, at $18.48 on the New York Stock Exchange, and are down 56 percent this year.

Howells said the shares are unlikely to drop much further, but for the time being, “Bank of America can collect the coupon payment, which is pretty attractive.”

It was a win-win situation for BoA, too bad the same can’t be said for all the people still having trouble.

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