SEC Probes Countrywide Exec

The U.S. Securities and Exchange Commission is looking into stock sales by Countrywide Financial Corp. chief Angelo Mazilo, it was reported Wednesday.

Citing people familiar with the matter, The Wall Street Journal said the SEC has opened an informal investigation into Mazilo’s sale this year of at least $130.6 million in Countrywide stock through executive sales plans.

The SEC is investigating at least a dozen companies, including Countrywide, in connection with the meltdown in the subprime mortgage market.

The SEC and the Justice Department are looking into New Century Financial Corp., a mortgage lender that filed for bankruptcy court protection this year, the newspaper said.

The executive sales plan in question — known as 10b5-1 — has allowed hundreds of executives to sell stock shares at regular intervals. The SEC is re-examining the sales in light of a study indicating insiders established such plans just prior to major declines in stock values.

Countrywide announced last month it would cut its payroll by about 20 percent — perhaps putting as many as 12,000 staffers out of work.

Bank of America recently announced plans to invest $2 billion in Countrywide, to help dispel a crisis of confidence among creditors and investors.