Bank of America Corp., already on the hook to the U.S. government for $45 billion, has another bill to worry about: Angelo Mozilo’s legal fees.

Mozilo, the ex-Countrywide Financial Corp. head sued for insider trading last week, is covered by an indemnity clause, according to Bank of America, which now owns the home lender. So are David Sambol and Eric Sieracki, the two Mozilo deputies also sued by the Securities and Exchange Commission. Defending the men may cost more than $20 million.

“This isn’t something that Bank of America decided to do,” said Robert Stickler, a spokesman for the Charlotte, North Carolina-based lender, the biggest U.S. banks by assets. “It was required when Mr. Mozilo was an employee.”

& #8226;

Read the full

Bloomberg News

story.