Countrywide shareholders approve sale to BofA

The approval came as two states sued Countrywide and its chief executive, Angelo Mozilo, accusing the firm of systematically decieving borrowers to get them to take on risky products the couldn't really afford.

The Illinois suit claimed Countrywide marketed "toxic products" to thousands of unsuspecting home buyers in an attempt to boost its fortunes on Wall Street. The other suit was filed by California.

Countrywide had been the nation's largest originator of home loans during its 40 years as an independent company. It ran into trouble last year when the housing market lurched and many homeowners were left unable to make their monthly payments.

Its shares--which fell 19 cents, or 4 percent, to $4.40 in afternoon trading Thursday--have fallen more than 90 percent from their most recent five-year high, which was set in 2005 during the peak of the housing boom.

Bank of America shares tumbled to their lowest point in nearly seven years after analysts warned of further weakness in the financial sector. The plunge came amid a broader market decline that saw the Dow Jones industrials average tumble more than 200 points.

BofA shares slid $1.06, or 4 percent, to $25.55 in afternoon trading. Earlier in the session the stock sold for $25.16, its cheapest trade since September 2001.