Saturday, June 06, 2009

WHERE ARE ALL THE CIVIL LAWSUITS?

We have lots of evidence that people know the Big Shitpile was in fact a Big Shitpile so there should be a tidal wave of lawsuits from people who got burned. Here's a little more evidence (h/t Atrios):
Countrywide exec often warned about mortgage risks
Fri Jun 5, 2009 9:57pm EDT
By Steve Eder

NEW YORK (Reuters) - John P. McMurray made it clear to his Countrywide Financial Corp bosses that they were playing a dangerous game with risk. But they didn't listen. McMurray was chief risk officer of the lender that became a symbol of some of the worst excesses of the subprime mortgage crisis.

Warnings from McMurray are cited often in a lawsuit filed by the U.S. Securities and Exchange Commission against Countrywide's co-founder Angelo Mozilo and two lieutenants.

Frequently cited in the lawsuit are emails from McMurray warning Mozilo, Sambol and Sieracki about the rapidly increasing risk of the loan portfolio at Countrywide, which by September 2006 estimated it had almost 16 percent of the U.S. home loan market.

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