Bank of America could buy Countrywide 

The Wall Street Journal is reporting that Bank of America is in talks to buy Countrywide Financial, the nation’s biggest home lender. A recent surge in defaults and foreclosures has caused Countrywide’s stock to plummet. In August, Bank of America bought $2 billion of preferred shares convertible into a stake of about 16 percent in the lender. Countrywide’s default problems have only worsened since then, and observers have wondered if the lender would be forced to declare bankruptcy.