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FBI probes Countrywide for possible fraud

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moh malekpour

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http://www.marketwatch.com/news/sto...C3B-8CBC-4030-A8A8-FEE8B2C879F7}&siteid=yhoof
NEW YORK (MarketWatch) -- Besieged subprime lender Countrywide Financial Corp. is being investigated by the Federal Bureau of Investigation for possible securities fraud, according to a news report Saturday.
The Wall Street Journal report said the probe focuses on whether Countrywide's management misrepresented the quality of its mortgages in routine securities filings, which may have led investors to overvalue the loans it then securitized into more than $100 billion worth investment vehicles between 2004 and 2007.
Banks and lenders lost billions of dollars over bad bets on mortgage-backed securities and analysts estimate they will continue to stanch the bleeding well into 2008.
The FBI inquiry will also take a closer look at how common fraud was in Countrywide's origination process, the report quoted unnamed sources as saying. The agency is currently investigating more than a dozen subprime lenders about their origination and securitization processes and possible conflicts of interest between the lenders and Wall Street
 
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Possible securities fraud? Fraud in CW's origination process? No sh*t. Go get 'em FBI. Once Mozillo gets to prison (one can only hope) he may have to switch from suntan lotion to Crisco.
 

Lee in L.A.

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It's only a Trillion Dollars or more total for this mess.
Somebody must be to blame. :shrug:
 

Greg Bell

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Possible securities fraud? Fraud in CW's origination process? No sh*t. Go get 'em FBI. Once Mozillo gets to prison (one can only hope) he may have to switch from suntan lotion to Crisco.
Just where would Mozillo put the crisco??
:rof:
 

Lobo Fan

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This goes right to the heart of this whole mess. At what point did CW etal decide that many of their loans were crap, yet being passed off as golden. These loans were sold as being solid, yet they are turning out to be less than that. It goes to the bond rating companies and those that rate securities. I think they should investigate to the LO level and try to determine just systemic the problem really was.
 

Michigander

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Enron redux

What is it with the top execs taking massive bonuses and selling their stock while the worker bees get shafted and laid off? Those who don't pay attention to history are bound to repeat the mistakes. Great for the general workers who count on a company for a regular paycheck and work honestly and diligently. They all get shafted in the end.
 

Dee Dee

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It's about time someone finally got suspicious about Mozillo selling off a large portion of his own stock in Countrywide. It was brought up in this forum at least a year or two ago. I think it's buried somewhere in the Housing Bubble thread.
 
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Michigander

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It's about time someone finally got suspicious about Mozillo selling off a large portion of his own stock in Countrywide. It was brought up in this forum at least a year or two ago. I think it's buried somewhere in the Housing Bubble thread.

Not just Mozillo but second in charge, Sambol, who I believe is taking over CW end for BoA. Duh
 
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