The CFC Story Is Over, Now a New Saga Begins ...

For Angelo Mozilo, founder, chairman and CEO of Countrywide Financial, the story is over but a new one is beginning for his "baby" of almost 40 years. As this column went to press, the news had broken that Bank of America would buy the once-venerated CFC for just $4 billion, twice what it paid for a 16% stake back in the summer of 2007.

Countrywide will be no more. Even though BoA said it will initially keep the brand name going, chances are it won't. Why? Because the Countrywide name - once the most valuable name in the business because it suggested quality and professionalism - has been trashed.

Regulators and AGs wide and far are investigating the company's loan practices and the Securities and Exchange Commission is probing Mr. Mozilo's sale of $400 million worth of stock over the past three years. (Mr. Mozilo is set to make another $112 million in severance when he departs.)

The general media - in particular The New York Times - has treated CFC like a whipping boy for the mortgage crisis, saying the company made bad loans and didn't care about lending standards - all in the name of greed. (Readers of this publication know that the mortgage and housing crisis was not Countrywide's doing, though it did play an important role by following other lenders - most notably Ameriquest and New Century - down the rabbit hole of subprime, but that's a column for another day.)

Only a crazy person would keep the Countrywide name. And BoA chairman and CEO Ken Lewis is hardly crazy though when he paid $2 billion for the 16% stake in CFC back in August, and that investment initially rose in value (not for too long) and then sunk like a cannonball through water, his board was probably wondering about his sanity.

Or maybe not. BoA's board signed off on the $4 billion purchase. Details were sketchy. It appeared that BoA was buying the entire company, not just the thrift but it was hard to tell by what was ...