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CALABASAS, CA-Bank of America has agreed to buy struggling homelender Countrywide Financial Corp. for $4 billion in an all-stocktransaction, a deal that bails out the financially troubled homeloan giant and makes Charlotte, NC-based BofA the country's largesthome mortgage originator. Bank of America's statement this morningregarding the acquisition says that, "Origination of subprime loansis not planned for the combined company," a reference to thesubprime home mortgage collapse that ultimately sank Countrywidewhile sending financial shock waves throughout the commercial realestate financing world and the rest of the capital markets.

The deal also ends speculation that Countrywide might file forbankruptcy, but it leaves unanswered the question of what willhappen to Angelo Mozilo, Countrywide's CEO, who at one time wasscheduled to retire but chose to stay on. Bank of America CEOKenneth Lewis addressed that question this morning in a conferencecall with financial analysts, saying, "I would want [Mozilo] tostay until the deal gets done, and then I would guess that he wouldwant to go and have some fun, but I will talk to him next weekabout his personal desires."