Senator Schumer says SEC should investigate Countrywide Financial

Earlier this week, the SEC reportedly launched an informal investigation of Countrywide Financial Corporation (NYSE: CFC)'s CEO Angelo Mozilo's stock sales, specifically the acceleration of his pre-arranged share-selling program.

Now New York Senator Charles Schumer is calling for more blood -- he wants the investigation expanded to include the company: In a statement, he said that the SEC should "expand its informal probe of suspicious stock sales by Countrywide CEO Angelo Mozilo to include the company itself, which may have taken steps to enable Mozilo's stock dumping as the subprime crisis heated up and Countrywide's stock prices plunged... Did Countrywide repeatedly adjust Mozilo's prearranged selling plans at his request, such that the intent and purpose of these plans -- the prevention of insider trading -- was undermined?"

It's a little weird for a Senator to offer advice on an SEC investigation, and it's hard to understand what exactly Schumer's point is -- other than trying to look tough on fraud and go after a company that is deservedly unpopular for its role in the subprime meltdown.

But I think the SEC probably has thing under control, and I'd be surprised if the investigation didn't expand to include the company.