Teamsters Sue Countrywide Financial For Alleged Artificial Inflation Of Stock

[Omaha Steve]

Source: Workers Independent News

By Jesse Russell

Countrywide Financial posted a third quarter loss of $1.2 billion, has been saddle bagged by the subprime mortgage crisis, and has watched shares fall by nearly 60 percent over the course of the year. Chief Executive Angelo Mozilo is now facing some more bumps in the road as the New England teamsters and Trucking Industry Pension Fund is suing him and alleging that the company artificially inflated stock prices to help benefit executives. For more than three years, according to the suit, executives were allowed to sell shares at prices reaping $842 million. The suit also names a number of other high level executives at Countrywide as well as auditor KPMG. In 2005 KPMG International was accused by the Department of Justice of committing fraud by abusing the use of tax shelters.

Read more: http://www.laborradio.org/node/7191

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[Flabbergasted]

1. kick

[truthisfreedom]

2. The process of turning giant corporations into "Ponzi schemes" has been fueled constantly by zero

oversight under the bush mal-administration. bush should be under constant fire for this complete betrayal of the public trust.

[Jacobin]

3. Any pension fund manager who was stupid enough to buy

into that subprime, adjustable rate, no-doc, low-doc bullshit needs to be fired and jailed for breach of fiduciary duty. Fine, sue Countrywide, but EVERYONE knew this was a fricking scam. EVERYONE who paid even a LITTLE bit of attention