Please summarize the key points in the case study: Countrywide Financial.© BrainMass Inc. brainmass.com October 25, 2018, 9:31 am ad1c9bdddf
In the early 1990s, Countrywide Financial was leading the nation with loan transactions due to their catering to lower-income consumers. The company allowed lower down payments, easier payment terms, and offered salesmen more incentive to offer this type of riskier loan. Some of the borrowers were being swayed toward the subprime loan even though their credit line would qualify them for a better product. In 2007 there were many loans being defaulted on, causing a great loss for Countrywide resulting in a great amount of layoffs and depreciation in the company value. The company offered what was called the Countrywide ...
This solution provides the student with a case summary of the case study: Countrywide Financial.
SOX: Accuracy of Financial Statements
The Sarbanes-Oxley Act (SOX) signed into law in July 2002 was intended to improve the accuracy of the financial statements prepared by publicly held companies. Carefully read the summary of this Act.
QUESTION: If you believe that legislation can guarantee the accuracy of public company financial statements, explain why previous laws have failed. If you believe that the reverse is true, please explain why CEOs and CFOs are paying so much attention to this law.
The response should be about 3 pages (double spaced, font size 12, times new roman)
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