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.
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.











Reader Comments (Page 1 of 1)
10-20-2007 @ 9:28AM
Ronald J. said...
I agree with Sen. Schumer. I also believe the govmt should investigate Mozilo for tax evasion. I'm sure Mozilo probably funneled part of that 130 mil that he got from Countrywide into offshore accts.
10-20-2007 @ 2:56PM
Beesa said...
Ronald J.....I love guys like you that make stupid statements like, "I am sure." What you are sure of is absolute nothing and no one really cares what you think.