CFC insider trading scandal looming?
- Thread starter blast19
- Start date
Well,
That's easy. Just lower interest rates enough to cover the problem.
He's basically saying market manipulation and propping the market up are the solution so sub-prime buyers can drop their holdings. Yeah, this doesn't make sense at all.
Maybe he wants a subtle increase in money available to force inflation to make the houses appraise more than what happens to be listed on subprime loans.
It's not a big deal yet. They're just trying out ideas and talking the talk.
It's when Freddie and Fannie start screaming that action will be taken.
BTW, I believe the appropriate term for what he is suggesting is a "soft landing."
Quote from ssternlight:
It's not a big deal yet. They're just trying out ideas and talking the talk.
It's when Freddie and Fannie start screaming that action will be taken.
BTW, I believe the appropriate term for what he is suggesting is a "soft landing."
Still though, wouldn't artificial inflation assist in solving the sub prime problem? Then that artificial inflation would be countered with a very, very strict tightening.
So I'm reviving this thread because I'm feeling better and better about the dreary outlook I have for this company and their CEO. A few new articles and links that some might find interesting:
http://www.irvinehousingblog.com/wp-content/uploads/2007/03/reset.PNG
http://money.cnn.com/2007/03/19/news/economy/next_subprime/index.htm?source=yahoo_quote
http://www.bloomberg.com/apps/news?pid=20601087&sid=aLx3Rj4SPBd0&refer=home
http://blogs.marketwatch.com/greenberg/2007/03/beyond_subprime.html
and this is just the beginning. This company has a lot of leaking holes gaping from the mouth of their CEO.
If you look at their most recent 10-K you can see that even though the company states that their non-prime exposure is very limited, in their Full Sprectrum Lending division, it accounts for 41% and/or $14 billion dollars over 90k loans. This is just from the FSL department which employs over 8k workers.
I smell something fishy when the company has this kind of exposure and downplays it while insiders UNLOAD shares...this is very sensitive stuff.
I at least expect class action lawsuits when this comes out in full. Mozilo went on tv to downplay their exposure and it was surely clear to him that current problems could resonate in so many other areas of the market.
I wouldn't be surprised to see a restatment either.
One other thing I've picked up on that I'm curious to see if it gets noticed is that the company likely spent $1 billion repurchasing stock on a company buyback and I will be eager to see how much their earnings are affected by it.
That's all for now...but the more I follow this story and try to understand how the CEO and company can downplay their exposure the more I sense that there is fraudulent activity.
http://www.irvinehousingblog.com/wp-content/uploads/2007/03/reset.PNG
http://money.cnn.com/2007/03/19/news/economy/next_subprime/index.htm?source=yahoo_quote
http://www.bloomberg.com/apps/news?pid=20601087&sid=aLx3Rj4SPBd0&refer=home
http://blogs.marketwatch.com/greenberg/2007/03/beyond_subprime.html
and this is just the beginning. This company has a lot of leaking holes gaping from the mouth of their CEO.
If you look at their most recent 10-K you can see that even though the company states that their non-prime exposure is very limited, in their Full Sprectrum Lending division, it accounts for 41% and/or $14 billion dollars over 90k loans. This is just from the FSL department which employs over 8k workers.
I smell something fishy when the company has this kind of exposure and downplays it while insiders UNLOAD shares...this is very sensitive stuff.
I at least expect class action lawsuits when this comes out in full. Mozilo went on tv to downplay their exposure and it was surely clear to him that current problems could resonate in so many other areas of the market.
I wouldn't be surprised to see a restatment either.
One other thing I've picked up on that I'm curious to see if it gets noticed is that the company likely spent $1 billion repurchasing stock on a company buyback and I will be eager to see how much their earnings are affected by it.
That's all for now...but the more I follow this story and try to understand how the CEO and company can downplay their exposure the more I sense that there is fraudulent activity.