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Originally Posted by pknopp
No, Mozilo still signed off on inaccurate financial statements. Sarbanes/Oxley was supposed to have addressed that after Enron. One should note that he is guilty even if he was not aware that the statements were inaccurate. (he was).
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Look into this a little more carefully...
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"In its civil complaint, the SEC accuses Mozilo and two of his top lieutenants, former Countrywide Chief Operating Officer David Sambol and former Chief Financial Officer Eric Sieracki, of misleading investors about the risk underlying the billions in mortgages the company sold.
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Which is EXACTLY what the GSEs did, as well.
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Mozilo's attorney, David Siegel... "The SEC's allegations are baseless," he said. "Mr. Mozilo acted properly and lawfully at all times."
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And THIS is KEY:
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"Countrywide's investors, bondholders, rating agencies, and the financial industry were all well aware that mortgage lending practices were liberalized at Countrywide and almost all other financial institutions."
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Inside the SEC Case Against Mozilo
LIBERALIZED. The government-initiated
liberalized lending policies (nontraditional documentation) affected virtually every mortgage originator. AND a great many mortgages are bought from the originators, bundled, and resold as MBS by the GSEs. Trillions of dollars worth.
Quote:
Originally Posted by pknopp
That out of the way, you will note that many who worked for Countrywide tell the story about actual fraud outside of accepting non verifiable income. They changed contracts after the fact along with a whole list of other things that could not be described as anything but fraud.
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...to MEET the requirements in the deal they signed with HUD to provide affordable housing.
Given all of that
and their own complicity... the
government's solution to making it look like they were pursuing what everyone
else would normally consider fraud was to
settle with Mozilo for a ridiculously low fine (given the circumstances), say justice is done, and sweep
their own complicity and guilt under the rug.
And how many of you fell for that?