Just when BofA maybe thought all was well with their purchase of Countrywide, suddenly a pack of dogs wants to (and may well) force Countrywide into bankruptcy to grab assets. Why? Because Countrywide didn’t tell holders of certain of their convertible notes that, due to them being bought, the notes could be cashed in. BNY Mellon as a custodian holder of these notes has sued.
And what is unique in this case is the pack of dogs (Countrywide bondholders), now have a vested interest in pushing Countrywide into bankruptcy so they can get some of the meat (Countrywide’s servicing unit), instead of worthless bones (Countrywide’s Debt).
This must be that “invisible hand of the marketplace” capitalists are so proud of.