BofA Did Something Right

Updated from 12:58 p.m. EDT

Bank of America's (BAC Quote) decision to part ways with three former Countrywide Financial executives after its acquisition of the mortgage lender last year is a silver lining in the dark cloud perpetually hovering over CEO Ken Lewis.

The Securities and Exchange Commission has accused the russet-skinned former Countrywide CEO Angelo Mozilo of misleading investors about the risks involved in its mortgage lending operations while selling off stock for a $140 million profit. The agency is charging former COO and president David Sambol and former CFO Eric Sieracki with fraud as well.

Thankfully, this mess didn't happen on BofA's watch -- which BofA is happy to point out.

"It would be inappropriate for us to comment since those named in the enforcement action were not employed by the company following our acquisition in July 2008," BofA spokeswoman Shirley Norton said.

Countrywide has actually performed well under the Charlotte, N.C., bank's umbrella since it was acquired at the start of 2008, as it was about to cave under the pressure of escalating losses from the "toxic" loans Mozilo referenced in email correspondence cited in the SEC complaint.

Following the acquisition, Bank of America halted its subprime lending operations, wrote down much of the toxic debt, and eventually halted foreclosures and began modifying better loans as part of the Obama administration's plan to keep families in their homes. All this was not only to benefit the U.S. consumer: The Countrywide purchase helped quadruple BofA's revenue during the first quarter, as refinancing activity surged.