The Following Table Shows the Share Sales by Officers Over the Past 18 Months

October 22 2007

Angelo R. Mozilo, the CEO of Countrywide Financial, is being investigated by the SEC for sales of his company’s stock just prior to the mortgage market changes and resulting decline in Countrywide’s stock price. As a result of the fortuitously timed sales, Mr. Mozilo netted about $132 million. Mr. Mozilo had put a 10b5-1 plan into place in October 2004. These plans allow insiders to file scheduled sales of stock in advance with the SEC so that issues of trading on inside information do not arise. The plans are often put into place around scheduled payments such as when children’s college tuition is due or loan repayments are scheduled. However, in October 2006, Mr. Mozilo stepped up the pace of his planned sales. He put a new plan into place and on two occasions increased the sales even in the accelerated plan.

Countrywide hit a high share price of $45.03 in February 2007 and Mr. Mozilo sold 580,000 shares at that time. The company’s shares were trading on October 20 at $17.35.

The following table shows the share sales by officers over the past 18 months.

INSIDER TRANSACTIONS REPORTED - LAST TWO YEARS
Date / Insider / Shares / Type / Transaction / Value*
12-Oct-07 / MOZILO ANGELO R
Officer / 139,916 / Direct / Option Exercise at $9.94 per share. / $1,390,765
12-Oct-07 / MOZILO ANGELO R
Officer / 139,916 / Direct / Automatic Sale at $18.38 per share. / $2,571,656
11-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Option Exercise at $9.94 per share. / $1,390,784
11-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Automatic Sale at $18.36 per share. / $2,568,894
10-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Option Exercise at $9.94 per share. / $1,390,784
10-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Automatic Sale at $18.74 per share. / $2,622,063
9-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Option Exercise at $9.94 per share. / $1,390,784
9-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Automatic Sale at $19.87 per share. / $2,780,170
8-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Option Exercise at $9.94 per share. / $1,390,784
8-Oct-07 / MOZILO ANGELO R
Officer / 139,918 / Direct / Automatic Sale at $20.14 per share. / $2,817,948
19-Sep-07 / DONATO ROBERT J
Director / 10,000 / Direct / Option Exercise at $14.69 per share. / $146,900
12-Sep-07 / DONATO ROBERT J
Director / 5,000 / Direct / Option Exercise at $14.69 per share. / $73,450
13-Aug-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $14.69 per share. / $675,740
13-Aug-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $28.40 per share. / $1,306,400
8-Aug-07 / MOZILO ANGELO R
Officer / 92,000 / Direct / Option Exercise at $14.69 per share. / $1,351,480
8-Aug-07 / MOZILO ANGELO R
Officer / 92,000 / Direct / Automatic Sale at $28.74 per share. / $2,644,080
7-Aug-07 / MOZILO ANGELO R
Officer / 110,000 / Direct / Option Exercise at $9.94 per share. / $1,093,400
7-Aug-07 / MOZILO ANGELO R
Officer / 110,000 / Direct / Automatic Sale at $28.06 per share. / $3,086,600
1-Aug-07 / MOZILO ANGELO R
Officer / 30,000 / Direct / Option Exercise at $9.94 per share. / $298,200
1-Aug-07 / MOZILO ANGELO R
Officer / 30,000 / Direct / Automatic Sale at $28.16 per share. / $844,800
31-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $14.69 per share. / $675,740
31-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $29.89 per share. / $1,374,940
27-Jul-07 / ROBERTSON OSCAR P
Director / 12,000 / Direct / Sale at $29.70 per share. / $356,400
27-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $14.69 per share. / $675,740
27-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $29.59 per share. / $1,361,140
25-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 - $14.69 per share. / N/A
25-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $30.52 per share. / $1,403,920
23-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
23-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $34.22 per share. / $2,395,400
20-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
20-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $34.12 per share. / $2,388,400
19-Jul-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Option Exercise at $13.24 per share. / $56,270
19-Jul-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Automatic Sale at $35.26 per share. / $149,855
18-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
18-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $34.32 per share. / $1,578,720
16-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
16-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $35.83 per share. / $2,508,100
13-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
13-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $36.64 per share. / $2,564,800
13-Jul-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Option Exercise at $13.24 per share. / $56,270
13-Jul-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Automatic Sale at $36.50 per share. / $155,125
12-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
12-Jul-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $36.45 per share. / $1,676,700
11-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
11-Jul-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $35.68 per share. / $2,497,600
3-Jul-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Option Exercise at $13.24 per share. / $56,270
3-Jul-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Automatic Sale at $37.02 per share. / $157,335
27-Jun-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Option Exercise at $13.24 per share. / $56,270
27-Jun-07 / SAMBOL DAVID
Officer / 4,250 / Direct / Automatic Sale at $35.96 per share. / $152,830
21-Jun-07 / GARCIA CARLOS MANUEL
Officer / 2,500 / Direct / Automatic Sale at $37.50 per share. / $93,750
19-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
19-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $38.90 per share. / $1,789,400
19-Jun-07 / SAMBOL DAVID
Officer / 6,375 / Direct / Option Exercise at $13.24 per share. / $84,405
19-Jun-07 / SAMBOL DAVID
Officer / 6,375 / Direct / Automatic Sale at $38.45 per share. / $245,118
18-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
18-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $38.48 per share. / $1,770,079
15-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
15-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $37.99 per share. / $1,747,540
15-Jun-07 / DOUGHERTY MICHAEL E
Director / 11,395 / Direct / Option Exercise at $12.15 - $13.29 per share. / $145,0002
15-Jun-07 / DOUGHERTY MICHAEL E
Director / 11,395 / Direct / Automatic Sale at $38.15 per share. / $434,719
14-Jun-07 / SAMBOL DAVID
Officer / 6,375 / Direct / Option Exercise at $13.24 per share. / $84,405
14-Jun-07 / SAMBOL DAVID
Officer / 6,375 / Direct / Automatic Sale at $37.79 per share. / $240,911
14-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
14-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $37.83 per share. / $1,740,180
13-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
13-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $37.81 per share. / $2,646,700
12-Jun-07 / GARCIA CARLOS MANUEL
Officer / 2,500 / Direct / Automatic Sale at $37.71 per share. / $94,275
11-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
11-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $37.67 per share. / $2,636,900
8-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.94 per share. / $695,800
8-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $37.95 per share. / $2,656,500
7-Jun-07 / GARCIA CARLOS MANUEL
Officer / 2,500 / Direct / Automatic Sale at $38.25 per share. / $95,625
6-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
6-Jun-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $39.06 per share. / $1,796,760
6-Jun-07 / SAMBOL DAVID
Officer / 6,375 / Direct / Option Exercise at $13.24 per share. / $84,405
6-Jun-07 / SAMBOL DAVID
Officer / 6,375 / Direct / Automatic Sale at $38.99 per share. / $248,561
4-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 - $9.94 per share. / $684,0002
4-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $39.15 per share. / $2,740,500
1-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
1-Jun-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $39.01 per share. / $2,730,700
31-May-07 / SIERACKI ERIC P
Officer / 16,708 / Direct / Option Exercise at $6.77 per share. / $113,113
31-May-07 / SIERACKI ERIC P
Officer / 2,902 / Direct / Disposition (Non Open Market) at $38.94 per share. / $113,003
31-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
31-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $39.80 per share. / $1,830,799
30-May-07 / CISNEROS HENRY G
Director / 5,075 / Direct / Sale at $39.50 per share. / $200,462
29-May-07 / GARCIA CARLOS MANUEL
Officer / 2,500 / Direct / Automatic Sale at $39.44 per share. / $98,600
24-May-07 / GARCIA CARLOS MANUEL
Officer / 12,500 / Direct / Automatic Sale at $40.35 per share. / $504,375
21-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
21-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $40.64 per share. / $1,869,440
18-May-07 / GARCIA CARLOS MANUEL
Officer / 12,500 / Direct / Automatic Sale at $41.18 per share. / $514,750
18-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
18-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $41.14 per share. / $2,879,800
16-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
16-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $40.25 per share. / $1,851,500
15-May-07 / DOUGHERTY MICHAEL E
Director / 22,790 / Direct / Option Exercise at $12.15 per share. / $276,898
15-May-07 / DOUGHERTY MICHAEL E
Director / 22,790 / Direct / Automatic Sale at $39.87 per share. / $908,637
14-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
14-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $40.26 per share. / $2,818,200
10-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
10-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $40.68 per share. / $2,847,600
8-May-07 / KRIPALANI RANJIT M
Officer / 14,002 / Direct / Option Exercise at $14.69 per share. / $205,689
8-May-07 / KRIPALANI RANJIT M
Officer / 14,002 / Direct / Sale at $40.75 - $40.8 per share. / $571,0002
8-May-07 / DOUGHERTY MICHAEL E
Director / 11,396 / Direct / Option Exercise at $12.15 per share. / $138,461
8-May-07 / DOUGHERTY MICHAEL E
Director / 11,396 / Direct / Automatic Sale at $42 per share. / $478,632
8-May-07 / GISSINGER ANDREW III
Officer / 4,042 / Direct / Sale at $40.74 - $41.71 per share. / $167,0002
8-May-07 / GARCIA CARLOS MANUEL
Officer / 12,500 / Direct / Automatic Sale at $40.06 per share. / $500,750
8-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
8-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $38.78 per share. / $2,714,600
8-May-07 / SAMUELS SANDOR E
Officer / 24,936 / Direct / Option Exercise at $11.68 per share. / $291,252
8-May-07 / SAMUELS SANDOR E
Officer / 24,936 / Direct / Automatic Sale at $40 per share. / $997,440
7-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
7-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $38.48 per share. / $1,770,079
4-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
4-May-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $38.03 per share. / $1,749,380
3-May-07 / GARCIA CARLOS MANUEL
Officer / 2,500 / Direct / Automatic Sale at $37.85 per share. / $94,625
2-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
2-May-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $37.54 per share. / $2,627,800
2-May-07 / GATES MARSHALL M
Officer / 6,805 / Direct / Option Exercise at $14.69 per share. / $99,965
30-Apr-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
30-Apr-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $38.45 per share. / $1,768,700
27-Apr-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
27-Apr-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $38.35 per share. / $2,684,500
26-Apr-07 / DOUGHERTY MICHAEL E
Director / 22,790 / Direct / Option Exercise at $12.15 per share. / $276,898
26-Apr-07 / DOUGHERTY MICHAEL E
Director / 22,790 / Direct / Automatic Sale at $39 per share. / $888,810
26-Apr-07 / GARCIA CARLOS MANUEL
Officer / 2,500 / Direct / Automatic Sale at $37.50 per share. / $93,750
23-Apr-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
23-Apr-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $37.33 per share. / $2,613,100
20-Apr-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940
20-Apr-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Automatic Sale at $37.84 per share. / $1,740,640
18-Apr-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Option Exercise at $9.60 per share. / $672,000
18-Apr-07 / MOZILO ANGELO R
Officer / 70,000 / Direct / Automatic Sale at $37.25 per share. / $2,607,500
17-Apr-07 / DOUGHERTY MICHAEL E
Director / 11,395 / Direct / Option Exercise at $10.25 - $12.15 per share. / $128,0002
17-Apr-07 / DOUGHERTY MICHAEL E
Director / 11,395 / Direct / Automatic Sale at $36.50 per share. / $415,917
16-Apr-07 / MOZILO ANGELO R
Officer / 46,000 / Direct / Option Exercise at $10.89 per share. / $500,940

Mr. Mozilo issued the following statement, “I would like to state categorically that at no time did I make any trading decisions on material, nonpublic information and that I fully complied with all applicable securities laws.”[1]

Discuss the elements of insider trading. Discuss why we worry about insider trading.

FOR MORE INFORMATION

Gretchen Morgenson, “Countrywide Stock Sales Scrutinzed,” New York Times, October 18, 2007, pp. C1, C4.

[1] James R. Hagerty and Lingling Wei, “Countrywide, Critic Join To Help Borrowers,” Wall Street Journal, October 24, 2007, p. A3.