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Mozilo Exit Payday: $110 Million Dollars

Nothing like a combination of reckless lending standards, aggressive stupidity and irresponsible behavior being rewarded.

For pushing no doc, no money down loans, emphasizing the sub-prime market, oh, and dumping $414 million of Countrywide shares before the stock tanked 85%, Countrywide Financial CEO Angelo Mozilo stands to get a severance package valued at more than $110 million, according to this LA Times blog.

Forget SEC investigations and shareholder lawsuits -- where are the townspeople with pitchforks and torches?

Friday, January 11, 2008 | 12:46 PM | Permalink | Comments (34) | TrackBack (0)
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Comments

I don't think we've heard the last of Mr Mozilo. I'm wondering whether the market has fully absorbed what happened today. The country's biggest savings and loan was going bust. It was saved by the intervention of BoA in what I think was a smart move. They bought a huge business for 17% of what it was worth a year ago with $4billion of paper! Lot's of legal downsides but the govt and legal system is not going to let the biggest financial institution in the country go down. They'll come thru it and in about three years time this will look like the steal of the century. Apart from the merits of the deal what it must tell the world, quite apart from the increasing signs of panic being manifested by the Helicopter man, is that things are in a very serious condition. The market seems to have reacted badly to hte news at first blush but when they've had time to digest it we could be seeing a slide to below 12,000. If Countrywide had actually gone the market would probably have fallen to the mid 11's and this seems only marginally better to me. Interesting times.

Posted by: John | Jan 11, 2008 1:04:45 PM

add in the downgrades that are just appearing for CFC. A little late methinks....

If this guy does'nt go to jail then we might as well live in the wild,wild,west. It is becoming increasingly easier to rape and pillage and all that is ever offered up is "we're sorry"

Thanks to Bushco we are.

Ciao
MS

Posted by: michael schumacher | Jan 11, 2008 1:14:00 PM

where are the townspeople with pitchforks and torches?

Sounds like a job for John Edwards.

Posted by: Kevin Kraft | Jan 11, 2008 1:18:18 PM

It is not unfair to ask if we are too civilized? Or sheepified?

Shouldn't someone pop this guy?

Perhaps the possibility of truly personal responsibility would do more than the possibility of temporary embarrassment (soothed by big time booty).

Posted by: JAN | Jan 11, 2008 1:19:40 PM

Once again, the system proves to incentivize those who have no long term care for the benefit of our society.

Do they still shoot people like this in China, or do they honorably kill themselves out of shame?

Posted by: D H | Jan 11, 2008 1:23:18 PM

Are you prejudiced against tar and feathering... or perhaps (with some poetic justice), the public stocks?

Posted by: bart | Jan 11, 2008 1:24:56 PM

OT:

Big Wave Riders Alert

Mavericks is on tomorrow....

Streaming Video available.......

http://www.examiner.com/a-1151152~Mavericks_rides_storm_s_wave.html

Sweet....

Ciao
MS

Posted by: michael schumacher | Jan 11, 2008 1:26:42 PM

One hopes they will find Mozilo a nice Fed pen with a tanning booth after the SEC investigation....

Posted by: donna | Jan 11, 2008 1:29:11 PM

Oh but you forgot to include:

Free flights on CFC corporate jets
Country Club dues to be paid on his behalf

and likely free cheese and toothbrushes, guys like this don't like to pay for anything

Posted by: Michael Donnelly | Jan 11, 2008 1:39:57 PM

The most disgusting aspect of this story is that Countrywide would be bankrupt right now if it weren't for the federal government handing over billions to them through the Federal Home Loan Banks -- $50 billion for the year as of September according to the Financial Times. Mozilo's payday is coming straight out of taxpayers' wallets.

Posted by: RichB | Jan 11, 2008 1:54:35 PM

You all realize the aristocracy don't like it much when the unwashed masses question them. He deserves $110M not because of what he DID, but because of who he IS.

Once you enter into that stratisphere of society, you are entitled to anything and everything regardless of what you do or don't do. The rest of us just have to pay our taxes and fees and STFU.

:)

Posted by: MooPoint | Jan 11, 2008 1:54:57 PM

Just wait until the AG's office gets to him. In 5 years when the post-mortem is complete and Michael Moore has finished his documentary we look back at this debacle and see that he was the Ken Lay/Jeff Skilling rolled into one.

OT: Boy yesterday is shaping up to be the ultimate pump and dump day.

Posted by: Short Man | Jan 11, 2008 1:56:58 PM

If history is any guide, the Fed always makes big moves when a large institution, like CFC, goes down--which is what BoA's buyout is. Therefore a half point cut in the Fed Fund rate and probably at least that much in the discounse rate is a lock on or before 1/31/08. Lookout belowwww!

Posted by: Johnny Vee | Jan 11, 2008 2:24:04 PM

MEW (mortgage equity withdrawl) and how it helped / hurt community's. Money borrowed on the home collateral to buy vacations, furniture, Harley Davidsons and autos. As opposed to a kitchen / bathroom repacement that is directly associated with MEE (mortgage equity enhancement).

You'll find many incentives to Buy Now, that fell into both categories. Free garage upgrade, landscaping, TVs, kitchen appliances.

see link:
http://money.cnn.com/2006/08/24/real_estate/inventive_incentives/index.htm

I return to phase 2 of MEW (mortgage equity withdrawl) and how it helped / hurt community's. These activities pumped foreign money into community's in the way of sales contract fees, lawyer fees, other
processing fees. Add in the home building industry, retail sales (of the incentives) and hotel stays for traveling migrant home builders.

Communities like Florida, New York and California are way ahead of Illinois because of their community's not being timid to taking advantage of the situation.

what ever this plan is to fix sub prime or whatever
IMO
subprime mess is camoflage
to cover up the dot com bubble pop, Enron, WorldCom, Tyco, Healthcare
South, Anadarco

something had to be invented to fix the real event ie: give away money to the poor
this plan is more sellable to the public

and while your at it knowing the plan ahead of time is a real hoot

Posted by: Greg0658 | Jan 11, 2008 2:36:37 PM

I guess after building up Countrywide over 40 years, he gets some sort of a pass. I don't understand why . . .>

Barry,

You seem critical of people for not holding him to account, then your statement seems to pull punches. I would have like to hear what you really think of this guy and what he represents. Rip him a new one Barry.

Posted by: Steve Barry | Jan 11, 2008 3:16:53 PM

$110 million?? That's seems kinda low for a failed company.

Didn't Chainsaw Al from Sunbeam get $400 million?

Posted by: Christopher Laudani | Jan 11, 2008 3:18:15 PM

we used to hang horse thieves. oh how i long for those good-old days to return.

Posted by: randy | Jan 11, 2008 3:22:21 PM

$110 million is outrageous, yet, no one is going to do anything about it.... same ole same ole.

Posted by: Stuart | Jan 11, 2008 3:36:45 PM

Global economy, global parachutes. I think there are few "Americans" left at the top of corporate America. They may have the passports, but they've got a bunch of them and don't really give a damn anymore. We've been letting these scumbags gut this country, and maybe it's time we gut them instead.

Posted by: dukeb | Jan 11, 2008 3:56:20 PM

Tangelo has perfected the art of painting himself as a victim too.

Can't prosecute a fellow victim can you??

That's the part we'll hear next....how he lost his entire business and expect some crocodile tears as well. Worked for Hillary...

Ciao
MS

Posted by: michael schumacher | Jan 11, 2008 4:03:58 PM

And people wonder why Jim Rogers left this country?

Posted by: me | Jan 11, 2008 4:13:53 PM

And people wonder why Jim Rogers left this country?

Posted by: me | Jan 11, 2008 4:14:30 PM

Jim Cramer screamed that everybody should BUY Countrywide at $44 share. It closed today at $7.16.
.

Posted by: VJ | Jan 11, 2008 4:54:21 PM

In Part I, Marie Antoinette said 'Let them eat cake.' In Part II, well, the rest of the story didn't turn out so well.

Why do they always forget about Part II?

Posted by: FT Woods | Jan 11, 2008 5:15:02 PM

Where were the people after Enron? Where were the people for the last 7 years?

Posted by: Paul Jones | Jan 11, 2008 6:19:56 PM

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