Reuters reported that Countrywide Financial Corp the largest U.S. mortgage lender was being investigated by the FBI for possible securities fraud.  Share followed by dropping 14 percent to a 13-year low on Monday.

Bank of America Corp, No. 2 U.S. bank, will move still continue forward with its roughly $3.7 billion acquisition of Countrywide regardless of the news.  Investors showed concern that Bank of America may cancel its purchase, but when all said and done it is still expected to conclude by end of third quarter.

Scott Silvestri, a Bank of America spokesman, said Monday: "The transaction is on track."

Countrywide, based in Calabasas, California, is currently in battles on several lawsuit fronts and regulatory compliance issues. 

Countrywide in my opinion will become a memory soon, but not before it become a time bomb for Bank of America.  Sure Bank of America is strong and has deep pockets, but will it be worth it for them in the long run.  Knowing first hand how poorly Bank Of America has handled its Wholesale department in the past, they had better not make the same mistake again.  Bank of America invested the first 2 Billion into Countrywide knowing that they would soon be up for grabs.  Countrywide has a great infrastructure that has made them the bohemian that they are.  I am sure that Bank of America will make the same mistake with Countrywide that they did with its own Wholesale division.  In the end they will dilute any benefit that Countrywide’s current systems have and end up with only the tax write-offs.