Thursday, March 20, 2008
Countrywide, the Sacrifice
"The [FBI] is probing subprime lender Countrywide Financial Corp. for possible securities fraud, according to law-enforcement officials and finance-industry executives. ... More than two dozen Wall Street firms helped construct [mortgage-backed security] deals, making it possible than some of them will also face law-enforcement scrutiny", WSJ, 8 March 2008.
I nominated Mozillo of Countrywide as Wall Street's sacrifice to the propriety gods on 25 December 2007. It remains to be seen how much scrutiny the other two dozen Wall Street firms will face and where it will lead. Hey Mike Garcia, where will it lead?