Bank of America, whether it wants to or not, is paying for the legal fees racked up by Angelo Mozilo, the embattled founder of disgraced mortgage firm Countrywide. The bank explained, according to Reuters, that Mozilo "is covered by an indemnity clause in place when he ran Countrywide, which Bank of America acquired last July 1." Under an agreement he had when Countrywide was an independent company, he is entitled to the legal fees that relate to actions he took while he was employed by the company. 

At what point does this start being a real liability for the bank? At $1 million? $2 million? The fact is that this could go on and on. Let's say criminal charges are filed--then there's a trial, and then an appeal. Recall that Jeff Skilling, former CEO of Enron, is still fighting for his cause legally from jail.    

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- here's the article

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