Thursday, June 4, 2009

Countrywide CEO Mozilo is going to rot in Kenneth Lay's old cell. FINALLY!!!

The SEC is FINALLY going to sue Mozilo of Countrywide for insider trading.
I have just a few comments to start out with.

1. Where are the clients and the shareholders?

2. Where is the CFTC and the ISDA? When do we get to prosecute those two in a court of law? Sorry, but "grilling" them by Congress isn't prosecution.

3. When does the SEC, shareholders or clients get to sue the other CEO's that crashed their financial institutions by selling unsecured debt obligations and held the "economy" hostage for a bailout. These group includes the following; Dick Fuld (CEO of Bear Sterns), Martin Armstrong and Ed Liddy (CEOs of AIG), Killinger (CEO of WAMU), Dimon (CEO of JP Morgan), Mack (CEO of Morgan Stanley), Finke, Dodd, Frank, Schumer, Waters, Raines and everyone else I did not mention?

4. Why is this taking so long? Shareholders and Clients were able to sue Enron and Madoff for damages in less time than it takes for Obama to do a press conference.

5. The CEO's can also be charged with a Pump and Dump scheme. But I think the CEOs have their bases covered.

This is a real mess. On December 21st, 2000 Bill Clinton and Republicans passed the Commodities Futures Modernization Act which created loopholes that allowed debt obligations, aka. derivatives to be regulated without regulation by the SEC so the SEC is doing what they can.

It's too easy to blame the wrong party, which Congress members do when infact Congress indirectly permitted these financial institutions to trade unsecured debt obligations.

The Commodities Futures Modernization Act which
reauthorizes Commodity
Futures Trading Commission (CFTC) for five
years, also clarifies the
Treasury Amendment exclusion and specifically grants
the CFTC authority over
retail foreign exchange trading.

Countrywide Chiefs Charged With Fraud
SEC Alleges Mozilo

The Securities and Exchange Commission accused former Countrywide Financial Corp. Chief Executive Angelo Mozilo and two former lieutenants of fraud, and unveiled emails from the height of the housing boom in which Mr. Mozilo warned of his company's "toxic" subprime mortgages.

The civil charges against Mr. Mozilo, former Chief Operating Officer David Sambol and former Chief Financial Officer Eric Sieracki are the first against high-profile executives stemming from the subprime mortgage meltdown. Federal prosecutors in Los Angeles are conducting a criminal investigation...

No comments:

Post a Comment