Bank of America, the largest retail banking operation in the country has being keen to expand it mortgage operations for a long time, and this week, the ill-fated, cash-starved Countrywide offer just that opportunity.

Investing $2billion into Countrywide provides BofA preferred stock that pays 7.5% per year and can be converted in Countrywide common stock at $18 per share, about %8 lower than today’s price of $26-27. When the stock is one day converted BofA will own 16% of Countrywide.

Sweet deal for BofA. Congrats.