The WSJ reports that the bank is in advanced talks to acquire the struggling Calabasas-based mortgage lender. Two sources are telling the Journal that Bank of America could strike a deal very soon (though there are the usual boilerplate warnings about how things might still fall apart). The market value of Countrywide has plunged to about $3 billion, which represents about two months' profit for Bank of America.

*Update: NYT M&A reporter Andrew Ross Sorkin says the two firms have been talking for at least the past week and a half. An announcement could be made as soon as this afternoon, but is more likely to be made Friday morning. As part of a potential deal, Sorkin reports, CEO Angelo Mozilo could lead a transition team and maintain an executive title for an interim period. But for someone who based his entire career on a feisty independence, it's got to be a humbling moment.