Will Countrywide's legal snags sour Bank of America's buyout?

Bank of America (NYSE: BAC) may have scored a shot at big tax savings with its acquisition of Countrywide Financial (NYSE: CFC), but it may also have acquired a liability to go along with it.

Like a lot of other subprime lenders, Countrywide's business practices are under a lot of scrutiny of late. A piece (subscription required) in today's Wall Street Journal looks at details of some of Countrywide's practices that have emerged during the bankruptcy proceedings of debtors.

There could be some liability there. There's also an SEC investigation of the perennially uber-tan Angelo Mozilo's stock sales, and shareholder lawsuits accusing the company of violating securities laws. State attorneys general are also taking a look at the company.

Of course Bank of America made efforts to estimate the extent of the possible liability before doing the deal. And the hundreds of millions Bank of America will save on its taxes because of the deal should offset the cost of any settlements with those pesky regulators. Uncle Sam giveth, Uncle Sam taketh away, but if you're Angelo Mozilo, he mostly giveth.