BofA Squashes Deal Talk

Bank of America's(BAC Quote) chairman and CEO Ken Lewis nixed rumors that the Charlotte bank was in acquisition talks with Countrywide(CFC Quote).

Speaking at Citigroup's financial services conference, Lewis said it was unlikely that BofA would acquire a smaller rival this year, since U.S. banks cannot own more than 10% of the country's deposits, according to reports.

BofA already has around 9% of the country's deposits.

And while the $1.5 trillion-asset company does want to sell more mortgages, the bank isn't attracted to the mortgage industry's business model, reports said.

"We like the product, but we don't like the business," Lewis said.

Speculation mounted late last week after the Financial Times reported that BofA was in discussions with the Calabasas, Calif.-mortgage lender, either for a deal or joint venture of sorts.

Countrywide's Chairman and CEO, Angel Mozilo shrugged off questions about a potential deal on the company's earnings conference call on Tuesday.

Shares of BofA rose 63 cents, to $52.75. Shares of Countrywide rose 10 cents, to $43.63.