If you had to pick the subprime lender most likely to be messing with its numbers and failing to take proper reserves, Countrywide Financial (NYSE: CFC) would have to be the one. It's already somewhat of a corporate governance pigsty, with the SEC currently investigating stock sales by CEO Angelo Mozilo.

The stock soared last week after the company reported its quarter and Mozilo made optimistic predictions, but according (subscription required) to The Wall Street Journal, "some analysts warn that the nation's largest home-mortgage lender by loan volume hasn't gone far enough in marking down the value of mortgage securities it holds and may have trouble delivering on that profit vow."

A central part of the bear thesis is that Countrywide is offering very high rates on CDs, indicating that the company is desperate for cash, and can only acquire it by paying high interest rates.

With value investor Whitney Tilson offering to eat his hat if the company earns a Q4 profit, I wouldn't be touching the stock. With uncertainty surrounding the company's accounting/future, management integrity is a must. WIth that in question, I just don't think Countrywide Financial is a prudent investment here.