SEC Looks Into Countrywide Stock Sales

Their triple-A-rated securities are now junk, they claim

(NEWSER) - Investors are suing Bank of America’s Countrywide mortgage unit, claiming they were fraudulently led into purchasing supposedly triple-A-rated mortgage-backed securities that turned out to be junk. Between 2005 and 2007, the investors bought hundreds of millions of dollars of securities that were supposed to be “conservative” and “low-risk.” But Countrywide misrepresented just how safe those securities were, and also ignored its own underwriting guidelines, the lawsuit claims. More»

Mozilo, two others accused of fraud, misleading investors

(NEWSER) - The SEC has charged former Countrywide chief Angelo Mozilo and two other former execs with civil fraud, the Wall Street Journal reports. The agency accuses them of insider trading and withholding information from investors about the condition of what was once the nation's largest mortgage company. They are the first executives to face charges connected to the subprime mortgage collapse, the Washington Post notes. More»

(NEWSER) - The long slide from the top continues for former Countrywide chief Angelo Mozilo. Staffers at the SEC have recommended filing a civil suit against him on charges of fraud and insider trading, reports the Los Angeles Times. Countrywide had been the nation’s largest mortgage lender before it nearly went belly up last year and was acquired by Bank of America. More»

State blames company for foreclosures

(NEWSER) - The state of Illinois will sue Countrywide and its CEO today for "unfair and deceptive practices" in the first suit related to the current mortgage crisis. The company is accused of pushing loans on homeowners even if they couldn't repay them, the Wall Street Journal reports. Illinois' attorney general blamed Countrywide's actions for widespread foreclosures. More»

Merrill, Citi and Countrywide honchos cashed in as companies foundered

(NEWSER) - Banking executives who took home huge paychecks even as the subprime mortgage crisis battered their companies appeared before Congress today to defend their actions. Democrats on the House Oversight Committee grilled them about their enormous pay packages as Republicans apologized to them and questioned the premise of the hearing, the New York Times reports. More»