Here's the congressional invite sent to Countrywide Toxic Mortgage's King of Insider Trading and Mortgage Fraud, The Orange Man himself, Angelo Mozilo

February 7th can't come soon enough.

Get that Jiffy Pop a poppin! And feel free to give Waxman a call (number below) with some suggested lines of questioning.

We've hoped and predicted for years that our corrupted Congress would hold hearings on the housing crash and corrupt Real Estate Industrial Complex in 2008, leading up to the election. And away we go. I wonder if Angelo will be taking the 5th?

Mr. Angelo R. Mozilo
Chairman and CEO
Countrywide Financial Corporation
4500 Park Granada
Calabasas, CA 91302

Dear Mr. Mozilo:

I am writing to request your testimony at a hearing on February 7, 2008, before the Committee on Oversight and Govemment Reform. The hearing will address executive compensation and severance arrangements for CEOs involved in the ongoing mortgage crisis.

According to recent press reports, if Bank of America completes its proposed purchase of Countrywide Financial, you stand to collect tens of millions of dollars in severance payments and other compensation. I request that you be prepared to provide your perspective on this reported pay package.

You should plan to address how it aligns with the interests of Countrywide’s shareholders and whether this level of compensation is justified in light of your company’s recent performance and its role in the national mortgage crisis.

The Committee on Oversight and Govemment Reform is the principal oversight committee in the House of Representatives and has broad oversight jurisdiction as set forth in House Rule X. An attachment to this letter provides additional information about testifying before the Committee.

If you have any questions regarding this letter, please contact Roger Sherman or David Leviss of the Committee staff at (202) 225-5051.

Sincerely,

Henry A. Waxman
Chairman

It should be obvious by now that Countrywide Toxic Mortgage's Board of Directors is not only incompetent, but they're corrupt as well

Mozilo obviously stacked the board with his cronies so that he and his buddies could personally enrich themselves by OVER $800 MILLION at the expense of the CFC shareholders and employees.

Most sickening of all is that he hilariously had the Board authorize repurchasing $2 billion in Countrywide shares on the open market this past year even as he dumped 'em fast and furious. HE SOLD THEM AT THE INFLATED PRICE AND THEY BOUGHT THEM. AND THAT'S WRONG.

Mozilo has run Countrywide into the ground, it's stock has dropped 90%, they're on their way to bankruptcy, they participated in illegal activity, thousands will lose their jobs, screwed shareholders are suing the company, Mozilo is under SEC investigation, and criminal charges against Mozilo are likely around the corner. AND YET THE BOARD STILL DOES NOTHING AND MOZILO CONTINUES TO CALL THE SHOTS.

Want to know what's wrong with American business today? Just look to Countrywide and its current and former board members. And when the charges come down on Countrywide, and the frog marches start, they should start with the Board of Directors.

Angelo R. Mozilo
Chairman and Chief Executive Officer
Countrywide Financial Corporation
Chairman Countrywide Bank, FSB

Jeffrey M. Cunningham
Chairman & Chief Executive Officer
NewsMarkets LLC

Robert J. Donato
Retired Executive Vice President, Los Angeles Branch
UBS Financial Services, Inc.

Martin R. Melone
Retired Partner
Ernst & Young LLP

Robert T. Parry
Retired President and Chief Executive Officer
Federal Reserve Bank of San Francisco

Oscar P. Robertson
President and Chief Executive Officer
Oscar Robertson Solutions LLC

Keith P. Russell
President and Chief Executive Officer
Russell Financial, Inc.

David Sambol
President and Chief Operating Officer
Countrywide Financial Corporation
President and CEO Countrywide Bank, FSB

Harley W. Snyder
President
HSC, Inc.

And then the noose around Countrywide Toxic Mortgage's Angelo Mozilo drew tighter

Too bad the government only started investigating Countrywide's crimes after the damage had been done. Where were they in 2003? 2004? 2005? 2006? The mortgage fraud at Countrywide (and others) was just so OBVIOUS. They called them f*cking liar's loans for a reason.

I hope they don't just investigate Countrywide. I hope they open criminal investigations of Mozilo and all of his co-conspirators, and the mortgage fraudsters themselves.

Frog marches! HP'ers want frog marches!

Attorneys general in California and Illinois are investigating the lending practices of Countrywide Financial Corp., the nation's largest mortgage lender, officials said Thursday.

The Illinois attorney general launched a probe into the lender's business practices and may expand the investigation to examine how homeowners were approved for mortgages with payments they were unable to afford.

"We're looking at why people who appear to us to not be able to afford the loans they're in are in these loans and how Countrywide contributed to that," said Deborah Hagan, chief of the attorney general's consumer protection division.

Countrywide Toxic Mortgage's stock is now down over 75% for the year. Nice timing on those stock sales Angelo!

Boy, Angelo sure dumped his shares at the right time, eh? Not like he had any inside information or anything. Wonder how the SEC is getting on?

All the HP favorite dogs have now been destroyed HP'ers, on their march toward bankruptcy. Countrywide, IndyMac, First Federal, Washington Mutual, Toll Brothers, KB Home, Fannie Mae, Freddie Mac, the list goes on.

I hope some of you made some $$$ on these dogs. Their downfall was soooooooooo easy to see. Even Angelo could have told you that.

Fannie Mae (NYSE:FNM), the government-sponsored mortgage agency, fell 7.6 per cent to $37.58, its lowest level in 10 years, amid investor doubts about the way it accounts for home loan losses.

Shares in fellow mortgage giant Freddie Mac fell 7.9 per cent to $37.50 after Credit Suisse warned it might take a loss of up to $5bn on its subprime AAA portfolio. Its analysts also forecast a third-quarter loss in excess of $1bn when Freddie reports on Tuesday, and cut their price target from $68 to $45.

Other mortgage-related companies suffered large share price falls. Countrywide Financial (NYSE:CFC), was down 12.4 per cent at $10.57, while Washington Mutual (NYSE:WM) was 7.3 per cent lower at $18.49.

The SEC investigations and CEO frog-marches will sure be fun to watch

The world will be shocked at the amount of fraud, book cooking, falsified financial statements and cover-ups associated with the Late Great Housing Ponzi Scheme.

All those investment bank, lender and builder CEOs who just got booted? A lot of 'em will be going to jail. And so will a few others that we know and loathe (hint - the orange one).

In addition to the big guys, you'll be seeing more realtors, mortgage brokers, appraisers and failed flippers facing serious charges and heading to the big house. Yes, it's a crime in America to lie on a loan application. Yes, it's a crime to cheat on your taxes. Yes, it's a crime to falsify financial statements. Only problem - I'm not sure our jails are big enough.

SEC investigating Merrill subprime portfolio

NEW YORK, Nov 7 (Reuters) - The Securities and Exchange Commission is investigating matters related to Merrill Lyncyh subprime mortgage portfolio, the company said on Wednesday.

Merrill Lynch said SEC staff initiated the inquiry on Oct. 24, the same day the company reported a $2.3 billion loss for the third quarter, mostly because of write-downs of subprime mortgage related assets.

Countrywide Toxic Mortgage announces earnings (or lack of 'em) on Friday. Can you feel the excitement in the air? Some ENRON-like excitement!!?

1) Angelo has dumped his shares, selling the last load of 'em last week. Now he can finally tell the world what he knew all along

2) They didn't pre-announce to lower expectations (so that Angelo could dump all his shares of course). All the other financials pre-announced, except for CFC. Gee, ya wonder why?

3) They are a public company that you would think has auditors

4) Angelo will likely go to jail for his insider stock trades, but you'd think he'd want to submit correct financial statements to avoid Sarbanes-Oxley jail time too

5) Subprime cancer has now spread to option ARMs and prime mortgages too, just as we predicted. This news will REALLY freak the market out

The only thing that'll keep CFC from shocking the market on Friday is convincing their auditors that they DON'T have to "mark to market" and that "mark to fantasy" is GAAP in the REIC world. But again, with Angelo having sold off his shares as of last week, he should feel free to come clean Friday. REALLY clean.

I'm no longer short CFC, since my October put options closed Friday (god bless 'em). But for those of you that still are, enjoy. You're probably enjoying your FED, IMB and WM puts too eh?

Countryfried is toast. And Angelo needs a pair of cuffs. And note - don't adjust your screen. Dude really is that color.

Staring into Countrywide's abyss

Giant mortgage lender's third-quarter results will offer a view into the depth of the problems facing lenders, housing industry and the economy as a whole.

"For a while, this is going to be a bumpy ride," said Stuart Plesser, an equity analyst for Standard & Poor's. "The expenses they have to pare down are huge, and getting it right will take a quarter or two. They've been operating in just-survival mode. All these margins are going to be way out of whack."

Subprime mortgages aren't the only challenge facing Countrywide Financial Corp., the nation's biggest home-mortgage lender. Some loans classified as prime when they were originated are now going bad at a rapid pace.

FLASH: FINALLY!!! North Carolina Treasurer calls for SEC investigation of Angelo Mozilo's insider stock trades at Countrywide Toxic Mortgage

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.