Submitted by Edward Harrison of the site Credit Writedowns
.It’s about time. The SEC has finally charged a high level executive in the banking industry in connection with activities that led to the largest bubble in U.S. history. The accused, as expected, is Angelo Mozilo, otherwise known as “The Man with the Tan.” You will recall that I have been expecting this for some time and wondered why it was taking so long for this case to come to fruition in my post, “Where are the perp walks?” Let’s take a walk down memory lane with Angelo, shall we?
- More reason BofA is crazy to take on Countrywide (Jun 2008)
- Countrywide: California sues too (Jun 2008)
- Florida sues Countrywide (Jun 2008)
- Ex-Countrywide CEO is the new Ken Lay (Aug 2008)
Then it was all quiet on the western front. Nothing for months regarding Mozilo. So, I’ll ask the question again from March:
Why has the Obama Administration not shown prosecutorial zeal with financial executives for alleged wrongdoings? I would have anticipated that Eric Holder at the Justice Department would have signalling to the American public that the new administration was breaking with the old – that Barack Obama wanted to at a minimum investigate wrong-doing.
Is this a case of the SEC being more careful in compiling its case, a clear sign of regulatory capture, or something more sinister? Please, chime in.
UPDATE: Here is the official press release of the charges of fraud:
SEC charges Countrywide co-founder Mozilo: source – Reuters
Countrywide’s Mozilo, Two Ex-Executives Accused by SEC of Fraud – Bloomberg
SEC Press Release on Mozilo’s fraud and insider trading