Countrywide Under Investigation By SEC

Countrywide Financial Corp. has received subpoenas from the Securities and Exchange Commission (SEC) as part of a formal investigation, Bloomberg reports. Bank of America, which bought Countrywide last month, has also received subpoenas regarding sales of auction-rate securities and municipal derivatives.

David Lykken, co-founder of Mortgage Banking Solutions, told Bloomberg that the investigation likely concerns whether former Countrywide CDO sold shares before disclosing information about the firm's financial state.

Source: Bloomberg

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