Rumor true: Bank of America to buy Countrywide

Bank of America invested $2 billion for 16 percent of Countrywide in the summer, and most thought they regretted it. The stock has been a dog ever since, amid some really nasty problems that in some ways get at the heart of the current mortgage crisis. As Countrywide continued to reel, Bank of America CEO Ken Lewis started to see the mortgage leader as an opportunity. He just agreed to pay $4 billion in stock of the entire company, deciding that the company will not likely ever be this cheap again. After his famous statement that he has had "all the fun I can stand" in investment banking, Lewis can assure his board that the company is moving back to its roots as a consumer bank. If the industry's woes ever clear up, this may prove to be a very savvy move. You have to wonder which mortgage fallen angel is next. WaMu?  

For more:
- here's a CNNMoney article

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