SEC charges former Countrywide execs…

June 4, 2009

Just finished watching a live stream of SEC Enforcement Chair Robert Khuzami announcing that the SEC had filed charges against three former Countrywide executives, including former CEO Angelo Mozilo, former COO David Sambol and former CFO Eric Sieracki. You can find the live tweets here.

During his remarks, Khuzami spent a fair amount of time talking about how Mozilo et al said one thing to investors and another thing in the filings. One example he gave was that the company said in its filings that 80% of its loans were Prime, when we now know that’s not exactly the case. To me, it’s an interesting take on why the filings are so important and why new disclosures are critical. “Investors are entitled to have material information disclosed to them,” Khuzami said during the presser.

I’m still making my way through the actual complaint and will post some more thoughts soon. Mozilo’s emails seem particularly interesting and kind of remind me of those old emails from Henry Blodget once upon a time. You can compare them to Mozilo’s emails here. You can also download the full complaint against Mozilo, Sambol and Sieracki here.

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