Interview Transcript: Angelo Mozilo

The following is the unofficial transcript of a CNBC exclusive interview with Countrywide CEO Angelo Mozilo on CNBC's "The Call" today at 11:00 AM ET. All references must be sourced to CNBC.

In an exclusive interview with CNBC's Maria Bartiromo, Countrywide CEO Angelo Mozilo discusses Bank of America's $2 billion investment in Countrywide, problems in the mortgage industry and Countrywide's strategy going forward, among other topics:

Maria Bartiromo: Hi, there, Trish. Thanks very much. We are on the trading floor right now of Countrywide Financial I’m with chairman and CEO Angelo Mozilo. Nice to have you with us.

Angelo Mozilo: Thank you for having me.

Bartiromo: Thanks for joining us. This has been a pressured period how did the $2 billion strategic investment come about?

Mozilo: It came about as result of long relationship with Bank of America. And Bank of America contacted us and said they would like to help. And, come in to talk to me. I spoke to ken and to his colleagues. And, since we've had a long relationship, relationship with bank of america goes book to 1969 actually. My first line of credit for Countrywide was with Bank of America.

Bartiromo: You borrowed $75,000 from Bank of America.

Mozilo: Personally to start Countrywide Financial in 1969.

Bartiromo: This on personal level must be incredible for you.

Mozilo: It is. This relationship.

Bartiromo: Let me ask you about the terms of the convert. This is talked bit today on Wall Street. It's already in the money. It's high coupon. Obviously this is a very attractive piece of paper for Bank of America.

Mozilo: It is.

Bartiromo: The terms are not so great for you.

Mozilo: I would disagree with that. I think terms are great. I think it's a win-win situation for us. Bank of America, world class firm. Largest retail bank in the United States to come into countrywide, do extensive due diligence, very professional team come away we like what we see want to invest $2 billion is great endorsement for what we believe we have at Countrywide. One of the strongest and best run companies in the country. Important from our viewpoint something of that caliber to give us vote confidence in this environment when everybody was in a panic things being said about countrywide which were not true. So from our viewpoint that is priceless endorsement for us. For a long-term shareholder this is the best deal, long-term shareholder of countrywide best deal they could have. To put countrywide back on a strong footing so we can move forward. It's true if you're looking countrywide short term flip type of thing, get in and get out maybe that doesn't appear to be great deal but I’m not interested in those people. Both companies win here in a very big way. And the premium by the way is not high premium. It's in the market premium. We've got a reasonableness opinion from Goldman Sachs looking at entire transaction so I’m comfortable that this is a great deal, very important good deal for Bank of America because it will be a long-term relationship. This is perpetual preferred. Goes on forever.

Bartiromo: Let me ask you. This if I’m shareholder why not go to the fed's discount window? If I’m shareholder maybe I prefer you financing this at 35 point $75 as opposed to selling $7 billion of the company at 7.25%?

Mozilo: I would love to a do that. Countrywide has a bank but is not a bank. Assets that rest in countrywide home loans the mortgage company doesn't have access to the window. But and the bank has access to the window but it doesn't have the assets. And we can't get the assets from countrywide home loans to the bank because of what they call 23-a and b. Regw doesn't permit that interaction. Would have loved to do that. Couldn't be done.

Bartiromo: People, the Merrill Lynch report last week coming out floating the word bankruptcy out there.

Mozilo: Right.