Monday, June 16, 2008

Stephen Cooper - a follow up

I didn't need to look for impropriety at American Home Mortgage to guess that it should be considered if you were to make an investment in their defaulted paper. They appointed Stephen Cooper CEO. Stephen Cooper is who you appoint when you do not want the bankruptcy management looking at your past. See my last post.

The Wall Street Journal has however beaten me to the story. In an article about two Bear Stearns executives that face indictment is this little throw-away:

Federal prosecutors in Brooklyn are investigating whether the Swiss bank UBS AG improperly valued its holdings and whether the collapsed mortgage lender American Home Mortgage Investment Corp. of Melville, N.Y., engaged in accounting fraud, people familiar with the matters have said. Prosecutors in Manhattan and Los Angeles are respectively probing whether mortgage lender Countrywide Financial Corp. engaged in securities fraud or loan fraud. None of the companies have commented.

Some things are so predictable...

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The content contained in this blog represents the opinions of Mr. Hempton. Mr. Hempton may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Hempton's recommendations. The commentary in this blog in no way constitutes a solicitation of business or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author.  In particular this blog is not directed for investment purposes at US Persons.