It didn't take long for the fall of Enron to become synonymous with the sad state of corporate accounting and reporting that gave rise to Sarbanes-Oxley. And now that all of the Enron execs involved in the scandal have been tried and punished where appropriate, we have a brand-new scandal on our hands.
The fall of Countrywide Financial is quickly becoming synonymous with the subprime mortgage scandal. In fact, in Thursday's PalmBeachPost.com, Countrywide CEO Angelo Mozilo is nicknamed "the new Ken Lay." He reportedly sold $145 million in stock options just before the company fell into bankruptcy.
Now the SEC and the House Oversight and Government Reform Committee want to know just how Mozilo managed to come out unscathed when so many others lost everything. Mozilo will appear before the House committee in February. The question, according to PalmBeachPost.com, is where Mozilo falls in the mix of fraud, greed and stupidity that made up the "subprime meltdown."