Former members of Countrywide Financial’s management team may be partly off the hook for Securities and Exchange Commission charges that include fraud and, for ex-CEO Angelo Mozilo, an insider-trading beef.
The New York Times reports that settlement talks have ramped up over the SEC suit against ex-Countrywide execs Angelo Mozilo, David Sambol and Eric Siracki, and that at least one defendent may reach an agreement. The case had been slated to go to trial on Tuesday, but the presiding judge has scheduled a conference call for this morning, presumably to see if there’s room for rapprochement among concerned parties.
“The case has attracted widespread attention because it is one of the only securities enforcement actions to emerge from the mortgage crisis that has resulted in charges against top executives at a company at the heart of the mortgage mania,” says The Times. Depending how the current foreclosure mess shakes out, the Countrywide case may not be the last.