Friday, 5 June 2009

SEC on the war path?

When the tide goes out, it is amazing what you can find washed up on the beach. The latest jetsam to be found on US shores is Countrywide Financial's former chief executive officer, Angelo R. Mozilo who has been charged by the Securities & Exchange Commission (SEC) with securities fraud and insider trading.

Countrywide Financial, a mortgage provider in the US, was one of the victims of the recent credit crisis and was eventually bought by Bank of America. The Federal Bureau of Investigation has launched investigations into the collapse of a number of high profile credit crunch victims including AIG, Lehman's and Fannie Mae and Freddie Mac.

Focusing on cases it says are at the "root of the financial crisis", the SEC alleges that Mozilo misled investors about its "high-risk" lending practices, and claims he described Countrywide's loan products as "toxic" and "poison". The SEC is also querying profits Mozilo earned on selling shares in Countrywide.

Lawyers believe this is the first of many such suits the SEC is likely to bring in the wake of the financial crisis as it looks to restore its reputation which was tarnished by its failure to uncover the Bernard Madoff Ponzi scheme.

1 comment:

Ignorance is just a lack of knowledge, but complacency is based on false assumptions, such as everything is O. K. said...

After 2 years, I believe this is still all Hog Wash. I have been to Martha Coakley Office and present my case and within five minutes of reading 2 pages of 30, the gentleman (ex-banker) that reviewed my paper work said " this is fraud " . In short, I received a letter a few days later from Martha Coakley' s Office suggesting I take my paper work to an Attorney Office in my home town only to be told they don't handle cases like mine. (the Run Around), so I resubmitted my paper work to Martha Coakley Office again only to be told, her office can't handle every case that comes through the door and that I should seek a private attorney. I got a kick out of that. The fact is, the Banksters and their attorneys count on the fact that people in my position can't afford an attorney even if I could find one with balls that would go after them.
The U.S. Attorney's Office knows who butters their bread and if they are going to go after anyone, it the small fry just to make enough noise to satisfy some of the puplic and win another election. And that is the sad part because most people don't even realize what has been done to our country by these Bankster. I have also been in Barney Frank's office who just sat there asking me " What Do You Want Me To Do I can't tell Martha Coakley what to do.
The Wall Street Bankster are raping us with the approval of the people we put in office. Cases like mine never get to court because it be an awakening for the American People. They are protected and spend allot of money for that protection.