Ya gotta hope the SEC was already investigating Mozilo and the goings-on at Countrywide.
But then again, like most of our institutions, they're probably run by monkeys too.
Three cheers for NC Treasurer Richard Moore. Hopefully this is the start of something good. And yes, like Mozilo, I'm short CFC. And hat-tip to mlimplode for the image - get your shirts over there!
N.C. Treasurer Seeks SEC Probe of Countrywide CEO Stock Trade
RALEIGH, N.C. (AP) -- State Treasurer Richard Moore has asked the U.S. Securities and Exchange Commission to investigate the timing of stock sales made by the chief executive of mortgage lender Countrywide Financial Corp.
Moore, the trustee of a pension fund that holds more than $11 million in Countrywide shares, said in an Oct. 8 letter to SEC Chairman Christopher Cox that he was "shocked" to learn that CEO Angelo Mozilo "apparently manipulated his trading plans to cash in" as the subprime crisis was heating up.
"As one of many investors who have felt the painful losses in Countrywide stock, I am outraged at his manipulation of the system and this abuse of shareholders," Moore wrote. "The timing of these sales and the changes to the trading plans raise serious questions about whether this is mere coincidence."
Moore cited reports that Mozilo was unloading 4.9 million Countrywide shares worth more than $138 million between November 2006 and August 2007. Moore said that at least three times over five months starting in October 2006, Mozilo reportedly changed the plans that outline how many of his shares would be sold monthly. That, said Moore, allowed the CEO to sell the stock before prices fell dramatically.