How Much Did Mozilo Know? Countrywide SEC Investigation

Countrywide Mortgage, you know, the ones on TV that have those commercials in nice fall colors that sometimes play twice with the same old guy making you feel all cozy - well they're in trouble. We reported on Greenpoint Mortgage going under back in August. Now Countrywide doesn't appear to be biting the bullet, but the CEO is in deep water because he traded some stock with insider knowledge.

The Securities and Exchange Commission opened an informal investigation this afternoon because Mr. Angelo Mozilo, the Chief Executive Officer sold at least $130.6 million in stock during the first half of the year. What do you suppose he knew?

A deputy director of the SEC, Walter Ricciardi, wouldn't comment on Countrywide, but said the agency will be looking deep into practices there. The SEC has already formed a "Subprime Working Group" back in January - so the word on the street is that Mozilo knew that the stock would tank and sold with that information.