Mover Mike

The WSJ is reporting that Bankamerica (BAC) is in talks to buy struggling Countrywide (CFC).

Bank of America last August propped up Countrywide by buying $2 billion of preferred shares convertible into a stake of about 16% in the lender.

Imagine, the nations largest mortgage originator was just $40 per share in May of 2007 and fell below $5 yesterday, prior to this announcement. CFC closed today at $7.75 up $2.63.

Bankamerica (BAC) Countrywide (CFC) Mover Mike

Update:

The NYT writes

Bank of America Agrees to Buy Countrywide for $4 Billion The deal rescues the country's largest mortgage lender and expands the financial services empire of the nation's largest consumer bank. The transaction would value Countrywide at $7.16 a share,

Update:

Isn't gratifying to know that not only did Angelo Mozilo set up a plan to rid himself of CFC shares to the tune of over $500 million, as this LA Times chart shows:

He also will get a nice severance package of $110 Million.