Tuesday, March 27, 2007

Feds Are Investigating Homebuilder Beazer (BZH)



BusinessWeek.com reports that federal investigators have opened a broad criminal probe into lending practices, some financial transactions, and other dealings at Beazer Homes USA.

In response to media reports and inquiries into the possibility of a federal investigation of the Co in connection with alleged mortgage fraud, BZH, had the following response. Co says, "At this time, BZH can not comment on or verify any investigation. However, we will fully cooperate with any investigation by any government agency.

After hours BZH is down 17% trading around $26. If BZH were to open at this price tomorrow, the stock will be trading below the low from 2004!

2 comments:

Glen said...

This is the tip of the iceberg. There'll be a lot more of these trumped up investigations because the 'authorities' need to find a scapegoat for Greenspan's folly, the world's banker who praised financial engineering (read derivatives) that enabled the little guy (sucker) to buy a house with SFA down, to the heavens. Sir Alan should spend the remainder of his days in the same federal rest-home as Bernie Ebbers.

Kevin said...

You make good points Glen

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