Pleae read Mario Bartiromo’s interview with Ken Lewis, CEO of Bank of America. You will recall that Bank Of America BAC bought Countrywide Finance CFC with a stock purchase. That is ,they exchanged .18 shares of BAC stock for CFC stock. Previously B of A had invested $2 Billion in CFC. Maria asks if BAC felt it had to purchase CFC to protect its original $2 B investment. Why did Maria ask that questinon?
This sets up a discussion of the order of creditors. It is necessary to understand that to grasp the importance of her question.
Professor Elam 
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