The CEO of the Bank of America, Ken Lewis, is stepping in to save Countrywide Financial. A $4 billion deal is in the works to acquire and boost Countrywide as their stock, after about a 2% decrease, has now leveled out at the price it held in 2002, $38.40.

Many are against this assistance as they think it is due to Lewis´s desire to save his reputation, after having already invested $2 billion in the company last year. However, others see logic in his actions. Countrywide, once was one of the high names in the mortgage industry and if Countrywide´s problems could be turned around, this could be a great bargain for the Bank of America. They would most likely market Countrywide as a subcomponent of their own banking department, as the Bank of America has its own strength´s in the banking community, especially with its Hispanic clientèle.

The numbers are in the Bank of America´s favor, as they are putting in $4 billion dollars for a company that previously held a value of $20 billion. It may take some time to restructure Countrywide and bring it to profitable status again, but once that is in place this new acquirement will more then pay off the initial investment.