Well it now appears that the merger of Bank of America and Countrywide Financial so aggressively pushed by Bank of America CEO and President Kenneth D. Lewis is finally bearing some fruit.

Unfortunately, it appears to be fruit of the toxic variety, as investors who hold mortgage backed securities of the former subprime lender are suing to demand their repurchase at full face value:

On Monday, a hedge fund sued the Countrywide Financial Corporation, the giant mortgage lender, demanding that Countrywide compensate holders of some securities backed by mortgages if the lender changes the terms of the loans.

The fund, Greenwich Financial Services, said it and other investors stood to lose money if Countrywide, now part of Bank of America, modified loans under a settlement that it reached with 11 state attorneys general in October.

Seriously, what were you thinking when you turned over the rock that was Countrywide Financial, saw the slime that lay beneath, and started to eat that, Mr. Lewis?

The problem with superstar multimillion dollar CEOs is that they don’t think that the basic rules of reality apply to them.