Bank of America is nearing a deal to buy Countrywide Financial, the troubled US home mortgage lender. Talks between BofA and Countrywide have been sporadic and first led to a $2bn equity investment in Countrywide by BofA in August. However, BofA was always thought to have a strong interest in acquiring all of Countrywide to expand its mortgage business to match its breadth in credit cards. BofA and Countrywide have also discussed a joint venture, say people familiar with the matter. Such a venture would have entailed BofA using its vast branch network to distribute Countrywide mortgage loans. Countrywide shares, which have plunged in recent days, rose 60% to $8.20 in afternoon trade on news of the potential deal.
