Countrywide Financial Facing Another Probe?

Lora Bentley

Citing The New York Times, RTTNews reports the Federal Bureau of Investigation and the Securities and Exchange Commission are conducting a joint investigation of Countrywide Financial Corp. A company spokesperson says Countrywide is not aware of the investigation, which is reportedly part of a larger inquiry designed to uncover the "root" of the subprime mortgage crisis.

 

From RTTNews:

The FBI investigation is reportedly centered on whether or not the mortgage lender lied in regulatory filings regarding its financial position and quality of mortgage loans.

Apparently Countrywide is one of 14 companies being investigated for securities fraud, accounting fraud, insider trading and other violations. The investigations began nearly a year ago, the story says. The lender is also the subject of a class action lawsuit related to the mortgage fraud.

 

Despite the latest news, Bank of America is still moving forward with its plans to buy out the troubled mortgage lender.



Add Comment      Leave a comment on this blog post
Oct 6, 2011 1:31 AM Ryan Ryan  says:

Looking back now, I not sure how more people did not see the crisis coming. I mean just look at all of the loans and mortgages that were being distributed in such a short amount of time. Hopefully we have learned from our mistakes and something like this doesn't get out of hand again. We all know this will more than likely happen again, but lets try to avoid the devastating magnitude that it reached. 

Reply

Post a comment

 

 

 

 


(Maximum characters: 1200). You have 1200 characters left.

 

null
null

 

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.