*B of A may buy Countrywide

The WSJ reports that the bank is in advanced talks to acquire the struggling Calabasas-based mortgage lender. Two sources are telling the Journal that Bank of America could strike a deal very soon (though there are the usual boilerplate warnings about how things might still fall apart). The market value of Countrywide has plunged to about $3 billion, which represents about two months' profit for Bank of America.

*Update: NYT M&A reporter Andrew Ross Sorkin says the two firms have been talking for at least the past week and a half. An announcement could be made as soon as this afternoon, but is more likely to be made Friday morning. As part of a potential deal, Sorkin reports, CEO Angelo Mozilo could lead a transition team and maintain an executive title for an interim period. But for someone who based his entire career on a feisty independence, it's got to be a humbling moment.



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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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