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Bank of America buys Countrywide ... presidents of the two countries shook hands at a regional summit.
Venezuela's President Hugo Chavez, who had backed Ecuador's Rafael Correa in condemning Colombia's actions, also embraced Colombia's Alvaro Uribe.
Earlier there had been heated exchanges between the heads of state at the Rio Group summit in the Dominican Republic.
The crisis had threatened political stability in Latin America.
Verbal sparring
Venezuela and Ecuador cut diplomatic ties with Bogota and sent troops to their borders after the Colombian operation on Saturday which left 20 Farc rebels dead, including a senior Farc commander, Raul Reyes.
Nicaragua's President Daniel Ortega, who had also broken off diplomatic ties with Colombia, said they would be re-established after the presidents shook hands.
The handshakes were broadcast live on television across Latin America in response to a special request from the summit's host, Dominican Republic President Leonel Fernandez.
Presidents Correa and Uribe had clashed at the opening of the summit.
Mr Correa condemned Colombia's "aggression", while Mr Uribe accused his counterpart of having links with the Farc rebels.
(BBC)
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