America announced on June 26, 2008 that the takeover of Countrywide Financial Corp. will result in the loss of 7,500 jobs over the next two years. The deal was a landmark in the housing crisis, given Countrywide's prominence as the nation's largest mortgage lender, at the time. It was to prove more costly to Bank of America, however, than was perceived at the time: in August 2014, Bank of America was forced to agree to a near-$17 billion deal to settle claims against it relating to the sale of toxic mortgage-linked securities, a large percentage of which had been sold by Countrywide. SEC charges On June 4, 2009, the U.S. Securities and Exchange Commission charged former CEO Angelo Mozilo with insider trading and securities fraud, and former COO David Sambol and former CFO Eric Sieracki with securities fraud for failing to disclose Countrywide's lax lending standards in Countrywide's 2006 annual report. Despite these charges, Countrywide, and then its successor Bank of America, were awarded the Property Management contract with the Veterans Administration. A July 22, 2008 memo from Judith Caden, VA Director of Loan Guaranty Service issued this proclamation in Circular 26-08-10. Bank of America still retained this position with VA until 2011. See also United States housing bubble New Century Financial References External links "What the Countrywide deal means for your mortgage", CNN Money, January 11, 2008 Timeline of events leading to Countrywide Financial's buyout by Bank of America, San Diego Union Tribune, January 11, 2008 Bank of America Mortgage lenders of the United States Subprime mortgage lenders Companies based in Calabasas, California American companies established in 1969 Financial services companies established in 1969 1969 establishments in California 2008 mergers and acquisitions