BofA, Countrywide Said to Be in Merger Talks

From the New York Times:

Bank of America is in talks to acquire Countrywide Financial, the troubled mortgage lender in which it has a $2 billion stake, people briefed on the situation told DealBook.

The two firms have held sales talks for at least the past week and a half, these people said. A price could not be learned, though at market open on Thursday, Countrywide’s capitalization was about $3 billion. An announcement could be made as soon as Thursday afternoon, but is more likely to be made Friday morning, these people said.

The negotiations mark an end to the independence of Countrywide, the nation’s largest lender and perhaps the biggest symbol of the shakeup in the mortgage market. The firm, founded by Angelo R. Mozilo, was among the most aggressive lenders to homeowners — extending loans even to borrowers with suspect credit histories, then raising interest rates.