Bank of America (NYSE:BOC) agreed to purchase the troubled Countrywide Financial (NYSE:CFC) in a $4 billion all-stock deal today after speculation of a bailout drove shares up over 50% late in yesterday’s session. The deal would give Countrywide shareholders 0.1822 shares of Bank of America for each share they own – or about $7.16 per share. The number came in about 7.6% lower than shareholders predicted yesterday with the stock’s jump after-hours, but is non-the-less a welcome offer for the company.

“We are aware of the issues within the housing and mortgage industries,” said CEO Ken Lewis to the WSJ. “Mortgages will continue to be an important relationship product, and we now will have an opportunity to better serve our customers and to enhance future profitability.”

Many are hoping that this move could help prevent a recession that so many have been predicting. A weak economy combined with rising mortgage and credit card delinquencies have become a substantial threat to the economy. Retailers reported weak sales in December and American Express reported reduced spending and increased delinquencies among its more affluent user base. Meanwhile, unemployment jumped and many economists pegged the odds of a recession close to 43%.

Ben Bernake indicated a willingness yesterday to cut rates more deeply, which helped boost the markets. Meanwhile, the bush administration starting throwing around the idea of a direct economic stimulus, such as tax rebates. Now, Bank of America’s move signals that some of the troubles in the mortgage market may finally be coming to the end of the climb in delinquencies and closer to regularity.

In the end, this is great news for shareholders and the economy in general. Countrywide shareholders no longer have to worry about bankruptcy and further declines while economists are now confident that at least one major company believes that the crisis is finally coming down from a high.

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