The US Department of Justice and the Federal Bureau of Investigation (FBI) have launched investigations into whether Countrywide Financial provided misleading information regarding the firm’s financial condition and loans in its security filings. This is in addition to the Securities and Exchange Commission, which has been conducting its own investigation. Countrywide is also the defendant in a class action suit by pension plans, which accuse the lender of securities fraud.
Countrywide recently reported losses of $422 million, more than twice the losses predicted by industry analysts. The Reuters news service reports that Countrywide shares fell 12.5% to $4.46 on news of the new investigation by the FBI.
Read the Full Article.