Angelo Mozilo, the former CEO of Countrywide Financial, is in talks with the SEC about a possible deal that could let him avoid standing trial for fraud charges, The Wall Street Journal said.
Talks between Mozilo, two other former executives and the SEC seem to be moving towards a settlement, The Wall Street Journal said without naming its sources. A status conference has been ordered for today, which could signal a new development in the suit.
The SEC alleges that Mozilo and his co-defendants hid the problems in Countrywide's credit portfolio from the public. The problems, related to risky mortgages, eventually forced Countrywide's sale to Bank of America (BAC).
Bank of America is not involved in the suit.
It is also possible that just one or two of the defendants would reach a deal before the trial.
Attorneys for the prosecution and the defense are preparing for trial.