Countrywide’s CEO Angelo Mozilo’s Sells Off Stock

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Dean Foust, fellow Atlanta resident, has a great post on the CEO of Countrywide who has been selling his shares since December. Now, before people go off half cocked, what he is doing is perfectly legal, but the CEO who has held onto his shares for 39 years selling them just before the company takes some severe hits and the stock takes a dive, looks a little icky.

Dean also goes into the practice of a stock buyback program that was enacted just as the CEO is selling his shares to keep the market strong. Again, nothing illegal but that darn smell test is going to leave many feeling a little queasy.

I don’t often put much stock in the so-called “earnings calls” that companies hold with Wall Street analysts immediately after each quarterly earnings report, given that the majority of analysts are terrified of asking tough questions lest they offend the CEO and lose their access. But one investor, Ronald Redfield of Redfield, Blonsky & Co., a small New Jersey CPA and investment firm that appears to be short Countrywide’s stock (see commentary here that Redfield posted on his web site a week before Countrywide reported earnings), had the gumption to question Mozilo about the sales. It was an interesting exchange. Mozilo briefly defended the sales, but you could tell the question was eating at him because at the end of the earnings call, he brought it up again. Here’s the exchange:

Read the rest of the post at Hot Property

Related posts:
  1. Countrywide’s Mozilo Charged With Securities Fraud and Insider Trading by S.E.C.
  2. Angelo Mozilo To Be Charged With Fraud By The SEC
  3. Countrywide Mortgages Friends Of Angelo Program Investigation Stalled
  4. Will Senator Dodd Go Down Over Sweetheart Countrywide Loans?
  5. Former Countrywide Executives Take Advantage of Down Real Estate Market

There Are 2 Responses So Far. »

  1. Angelo, although he appears to be a good Jesuit Boy, is guilty of back dating certain options grants (check out 4-2-07 and 4-1-05.)

    He also violated 16 b of the Securities Act of 1934 and I don’t care what some so called experts say.

    Angelo just hope you’ve made enough political contributions.

    John

  2. Angelo, although he appears to be a Good Roman Catholic , may be guilty of back dating a few options grants ( see the 1.4 million on April 1, 2005 and the 1/2 million on April 2, 2007).

    He may also have issues with 16 b of the Securities Act of 1934 with the later sales of stock against those options grants.

    Time will tell.

    John

Post a Response

« Back to text comment
  • Popular

    Most Comments

    Search

    Tags

    Archives

  • Recent Comments

    • My Representative is one of the infamous eight Republicans who voted to support this disgraceful legislation, Frank LoBiondo in South ...
      Susan | 3Jul09 | More
    • When selling our homes, what takes place should be between the seller and the buyer. Not the government. ...
      sam | 3Jul09 | More
    • Yea I guess I would be mad or should I say disappointed if I missed the cut off date for ...
      Lauren | 3Jul09 | More
    • If you haven't read this bill I could easily see how one could support it. I mean the bill ...
      Corey K | 3Jul09 | More
    • Pain is gain. I really support this, and the change may be hard but it has to be done. ...
      M Realty | 3Jul09 | More
    • I can't tell you how many people I've talked to in the past week who are completely unaware that the ...
      Trish | 3Jul09 | More
    • The liberal government policies have facilitated the expansion of the foreign involvement in the Real Estate Investment sector.
      genetic cancer testing | 3Jul09 | More
    • We all know EPA has the most murders per 100k ever. 175 murders per 100k.
      hmmm | 3Jul09 | More
    • I am confused...I closed on my house 1 April 2008, I did not get $7500 pay back or $8000 no ...
      Jeff Hammack | 2Jul09 | More
    • I am a person that has been qualified for a loan and really would love to see this enacted. ...
      Gretchen | 2Jul09 | More
  • Statistics

  • Friends

  • Recent Friends Visiting

  • Subscribe





    Get Updates Delivered Daily By E-Mail:

    Delivered by FeedBurner