Financial Times FT.com

Countryside takeover agreed amid lawsuits

By Saskia Scholtes in New York

Published: June 25 2008 23:43 | Last updated: June 25 2008 23:43

Countrywideshareholders approved Bank of America’s proposed acquisition of the troubled mortgage lender on Wednesday amid a storm of litigation alleging Countrywide engaged in unfair and deceptive lending practices in Illinois and California.

Countrywide and Angelo Mozilo, chief executive, were named in civil suits filed by the states’ attorneys-general, raising fresh questions over the extent of Bank of America’s exposure to Countrywide’s potential legal and regulatory liabilities when the deal closes.

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