October 11, 2007
SEC Asked to Investigate Countrywide CEO's Stock Sales
The SEC has previously stated that it was looking into Rule 10b5-1 plans that allow corporate executives to sell their company's shares under a prearranged plan. North Carolina's State Treasurer, who is trustee of state pension plans, has asked the SEC to investigate stock sales made by Countrywide Financial CEO Angelo Mozilo in the months before the Countrywide stock price dropped because of the subprime mortgage collapse. Beginning in October 2006, Mozilo sold shares under a Rule 10b5-1 plan and twice raised the number of shares that could be sold. Last week the company said that Mozilo would sell almost all his remaining shares before the plan expired. NYTimes, Stock Sales by Chief of Lender Questioned.
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