FLASH: Countrywide Toxic Mortgage (finally) under investigation by FBI, and Angelo Mozilo under SEC investigation too. It's just a matter of time now

It's only a matter of time now HP'ers. Angelo Mozilo will spend the rest of his days, after his conviction and surrender, in jail. The orange man will be wearing an orange jumpsuit for the rest of his life, and he will be joined by more than a few of his fellow Countrywide employees in my personal opinion.

A few more comments on this expected development

1) There is NO way that Countrywide gets acquired by Bank of America. No way. Ain't gonna happen. Not even for a penny. BofA would have to be the stupidest organization on earth. The Countrywide lawsuits and criminal investigations will go on for years to come, and the penalties, judgements and fines will be in the tens of billions, if not more. If BofA acquired CFC and their liabilities, it could wipe out BofA's balance sheet in a minute.

2) Angelo Mozilo and Countrywide are rightly taking the blame for the mortgage meltdown, subprime disaster and housing crash. Their employees, led by their insider-trading, self-enriching executives, knowingly enabled mortgage fraud (they called them "liar's loans" folks), and enriched themselves at the expense of their shareholders by dumping shares even as they were borrowing money to buy them back on the open market. Shameful.

3) As pointed out here for years, Countrywide was putting out obviously falsified financial statements in violation of Sarbanes-Oxley in order to juice short term results and their stock price while Mozilo and the insiders were dumping to the tune of hundreds of millions of dollars. Not only will Countrywide be investigated and found guilty, but their auditors will be as well.

4) Countrywide has conned the corrupt and incompetent fools at the Federal Home Loan Bank out of at least $51 billion and likely more than $100 billion, which in the end will be bailed out by the US taxpayers, by using laughably over-inflated and wildly mis-marked mortgage-based assets for loans. NO TAXPAYER BAILOUT FOR THE FHLB - LET THESE BOZOS FAIL TOO!!!

5) Angelo Mozilo will go to jail, unless he flees from justice or kills himself. He is the Ken Lay and Bernie Ebbers of this latest financial mania. He ruined lives, he helped destroy the American economy, and he may be the most destructive business person in the history of the United States. He should be arrested immediately, and he should be shown no mercy.

Hi. I'm Angelo Mozilo of Countrywide. I duped homedebtors into signing up for toxic loans and then I dumped hundreds of millions in CFC stock.

Any questions? Good. Oh, I also had my company buy back stock with shareholder money to prop up the price as I dumped it. Any questions? Good. Oh, I also laid off thousands of Countrywide employees as I was enriching myself. Any questions? Good.

(note - just like Angelo I'm still short CFC)

Some executives might be tempted to establish plans to sell stock when they anticipate the stock price might fall in a coming quarter, perhaps because a big customer has warned it intends to renegotiate a contract. And erratic trading also looks suspicious, even though that could occur because the stock misses a target price for months at a time.

But the suspicions are especially keen, the panelists said, when executives modify, suspend or terminate their plans. For example, a pension is suing Countrywide Financial after CEO Angelo Mozilo sold more than $50 million of stock through a 10b5-1 plan he had modified about the time when regulators were scrutinizing subprime loans.

"I think it's dangerous to terminate or modify a plan," said Alan Dye, a partner with Hogan & Hartson in Washington D.C.

"It's better to just go ahead and live with the plan."