Countrywide Financial

Folwell: No bully pulpit on business

ryanteaguebeckwith — Tue, 11 Dec 2007 13:18:58 -0500

Should the state treasurer's office be a bully pulpit on corporate governance?

Richard Moore has used the state's $73 billion retirement fund as a tool to call for reform on Wall Street, attacking Countrywide Financial most recently.

State Rep. Dale Folwell says he would not do the same.

The Winston-Salem Republican, who is running for treasurer, told Dome that the office has limited financial and personnel resources.

If elected, he said he would focus on the state's own business, specifically the cost of insuring retired state workers and reducing high premiums for current employees.

"We have absolutely no recognition of our unfunded health care liability," he said. "Where is the bully pulpit on that?"

Friday quick hits

ryanteaguebeckwith — Fri, 12 Oct 2007 09:55:36 -0400

* State Treasurer Richard Moore ("press-shy") asks the Securities and Exchange Commission to investigate the CEO of Countrywide Financial for selling stock. (The Street)

* Agriculture Commissioner Steve Troxler bets two-headed raccoon, etc., will help draw 1 million to State Fair — 100,000 than the state record. (N&O)

* U.S. Rep. Sue Myrick gives emotional tribute at the funeral of her close friend, U.S. Rep. Jo Ann Davis of Virginia, who died of breast cancer. (Washington Times)

* Former Sen. Richard Burr aide Dan Woodley has taken a job for Crosby-Volmer International Communications, a public relations firm in D.C. (Roll Call)

More from Moore on Countrywide

ryanteaguebeckwith — Fri, 14 Sep 2007 09:07:10 -0400

Richard Moore took another swing at Countrywide Financial Tuesday.

After attacking the troubled mortgage lender on CNBC last week, the state treasurer sent the company a letter accusing it of unethical and unsustainable business practices, the Triangle Business Journal reports.

In the letter Moore, writes that the company rewarded employees who gave subprime mortgages to customers it knew could not afford them.

"As an owner of this company and a large institutional investor, I ask that you provide me with an explanation of why the company implemented and continued this business model in the face of mounting evidence that the product was unsustainable," he writes.

The state retirement system, which Moore oversees, owns about $12 million worth of shares in Countrywide.

Moore is running for the Democratic nomination for governor.

Document(s):
moore-countrywide.pdf

Moore on Countrywide

ryanteaguebeckwith — Wed, 05 Sep 2007 13:53:39 -0400

Richard Moore criticized Countrywide Financial on CNBC today.

The state treasurer, who is running for the Democratic nomination for governor, appeared on "Squawk Box" with Becky Quick this morning.

He argued that Countrywide, a mortgage lender, loaned too much of its money, especially in hot real estate markets. The company has been in serious financial trouble lately because of defaulted mortgages in the subprime market.

"There's a reason that you don't loan 100 percent," he said. "Because history has told us it will go through a cycle where they can't repay."

He said North Carolina's retirement system owns about $12 million worth of shares in Countrywide — a relatively small amount of its overall $75 billion holdings. But he said he would use the state's authority as a shareholder to push for management changes.

He also criticized ratings agencies for not having more of an "arm's length" relationship with lenders.

"They're supposed to act as a safeguard, an independent referee if you will in the marketplace," he said.