Bank of America put an end to speculation today and announced Friday that it has agreed to pay about $4 billion in stock to acquire Countrywide Financial, the troubled lender that became a symbol of the excesses that led to the subprime mortgage crisis. Our readers will remember when the wheels fell off back in August 2007. Countrywide immediately announced that they had no liquidity problems. It only took five months for rumors of bankruptcy to start.

“We believe this is the right decision for our shareholders, customers and employees,” Angelo R. Mozilo, Countrywide’s chairman and chief executive officer, said in the statement. “Bank of America is one of the largest financial institutions in the U.S. and internationally, and we are confident that the combination of Countrywide and Bank of America will create one of the most powerful mortgage franchises in the world.”

The deal is expected to close by the third quarter of 2008.