Comments on: Is the Noose Tightening Around Countrywide? http://www.nakedcapitalism.com/2008/05/is-noose-tightening-around-countrywide.html Sun, 22 Nov 2009 00:22:06 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Peripheral Visionary http://www.nakedcapitalism.com/2008/05/is-noose-tightening-around-countrywide.html#comment-8088 Peripheral Visionary Thu, 15 May 2008 15:13:00 +0000 http://www.nakedcapitalism.com/2008/05/is-the-noose-tightening-around-countrywide/#comment-8088 <i>"Rejecting the arguments of Countrywide executives and directors that they were unaware of lax loan operations that led to ballooning defaults . . . "</i><br/><br/>Pleading incompetence seems to be the securities law equivalent of pleading insanity under criminal law. But wasn't the executive accountability portion of Sarbanes-Oxley supposed to close this particular loophole?<br/><br/><i>"The plaintiffs contend that the directors and officers dumped shares even as the company spent $2.4 billion to repurchase its own stock in late 2006 and early 2007."</i><br/><br/>If corporate executives dumping shares while the company repurchases shares is grounds for litigation, there wouldn't be enough courtrooms in the country for all the lawsuits. “Rejecting the arguments of Countrywide executives and directors that they were unaware of lax loan operations that led to ballooning defaults . . . “

Pleading incompetence seems to be the securities law equivalent of pleading insanity under criminal law. But wasn’t the executive accountability portion of Sarbanes-Oxley supposed to close this particular loophole?

“The plaintiffs contend that the directors and officers dumped shares even as the company spent $2.4 billion to repurchase its own stock in late 2006 and early 2007.”

If corporate executives dumping shares while the company repurchases shares is grounds for litigation, there wouldn’t be enough courtrooms in the country for all the lawsuits.

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