It wasn't clear how quickly a deal might be struck for the nation's largest mortgage lender and one of the largest Hawai'i mortgage lenders. Countrywide

has been roiled this week by a tumbling stock price and rumors that a bankruptcy filing was imminent.

The people also told the newspaper it was possible that an agreement could be delayed or fall apart altogether.

Bank of America, which already has a roughly 16 percent stake in Countrywide and is one of the nation's biggest banks,, told The Associated Press it does not comment on market rumor or market speculation.

Countrywide did not immediately return calls or e-mails seeking comment.

Countrywide shares climbed $3.09, or 60 percent, to $8.22 in late afternoon trading Thursday, while Bank of America shares rose 90 cents, or 2.3 percent, to $39.65.

The New York Stock Exchange said Thursday it asked Countrywide to issue a public statement indicating whether there are any corporate developments that can explain the "unusual" trading activity. The exchange said the Countrywide declined to comment.

Countrywide's stock has plummeted in recent days to record lows amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif., lender and others in the mortgage industry.

Last August, the mortgage lender drew on an $11.5 billion line of credit to steady itself.

Bank of America aided Countrywide by buying $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually.

The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions.

If Bank of America should convert the shares, it would hold between 16 percent and 17 percent of Countrywide shares.