Former Countrywide head Mozilo is charged by the SEC

| 4 June 2009 16:05

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?

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 Former Countrywide Executives With Fraud – SEC website

Related articles
SEC charges Countrywide co-founder Mozilo: source – Reuters
Countrywide’s Mozilo, Two Ex-Executives Accused by SEC of Fraud – Bloomberg

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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1 Comment

  1. avatar Green says:
    4 June 2009 at 21:49

    Copy a DVD go to prison for 5 years and pay a $250,000 fine. Undermine the entire world economy, cause massive job losses, record breaking bankruptcies, force millions of people to lose their homes and you get a golden parachute and a trophy wife.
    This SEC prosecution is ludicrous. Mozilo should be charged with Financial Terrorism under the Patriot Act, waterboarded, tortured and have Hank Paulson’s head shoved up his ass.