X

SEC Looks Into Countrywide Stock Sales

CEO of nation's largest mortgage lender dumped $130M in stock before crisis hit
By Will McCahill,  Newser Staff
Posted Oct 17, 2007 10:06 PM CDT
SEC Looks Into Countrywide Stock Sales
The exterior of the Countrywide home loans office in San Mateo, Calif., Friday, Aug. 17, 2007. It's never been tougher to close a deal than during the past few weeks as lenders have gone bankrupt and the skittish survivors become more discriminating to avoid further trouble. The credit mess forced Countrywide...   (Associated Press)

(Newser) – The CEO of troubled mortgage lender Countrywide is under investigation over stock sales, the Wall Street Journal reports. Angelo Mozilo sold at least $130 million this year of stock in a company deeply affected by the subprime mortgage mess; the Securities and Exchange Commission is looking into several aspects of Countrywide's operation, including executive stock sales.

story continues below

Last month, the top US mortgage lender announced plans to lay off up to 20% of its workforce of 60,000. Countrywide isn't the only mortgage firm facing an SEC probe, the Journal reports— New Century Financial Corp. is also under scrutiny. Studies have shown the executives often establish plans to sell stock—while dodging insider-trading charges—just ahead of serious price declines. (Read more Countrywide stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X