September 12, 2007

A Special HousingPANIC Message to the Countrywide Mortgage employees who are suing Countrywide and Orangelo Mozilo

Don't just sue. If you're at the corporate headquarters, at 2:00 PM on Friday, everyone get out of your cubicles, and march your soon-to-be-laid off butts down to Orangelo Mozilo's corner office, and DEMAND that that son of a bitch put $100 Million of his ill-gotten insider-trading gains into your 401k plan to help cover your losses.

2:00 PM on Friday. Each and every one of you. Have the courage (finally) to do what's right. And remember, you're about to be laid off anyway, so you have nothing to lose.

Nothing.

Send pictures to HP, do a sit-in if you need to, and good luck out there.

Employees Sue Countrywide, Alleging Loss of Millions of Dollars in 401k Plan

Some Countrywide Financial Corp. employees sued the mortgage lender Wednesday, claiming they suffered heavy losses in their 401k retirement accounts after the company failed to warn them about the depth of its financial troubles.

The lawsuit, filed in U.S. District Court in Santa Ana, seeks class-action status and names as defendants Countrywide Chairman and Chief Executive Angelo Mozilo and benefits committee members in charge of the retirement plan, according to attorney Steve Berman, who is representing the plaintiffs.

He said employees decided how much of their salary to set aside in their retirement plan based in large part on their understanding of the company's financial health.

But those overseeing the plan failed to warn workers or intentionally concealed key information, the lawsuit claims.

"Most of these employees weren't risk-takers, rather claims processors and line staff who go to work every morning, putting a little away every month for retirement, or to finance a child's education," Berman said in a statement.

48 comments:

Anonymous said...

That's the CEO of IndyMac on the right.

Anonymous said...

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If you have 5% of more of your 401K plan in ANY one stock, you are a fool.

Marky Mark

Not a realtwhore said...

Not risk takers my a$$, they undoubtedly had 100% of their 401(k)s invested in CFC shares. Did anyone learn anything from Enron!?

Anonymous said...

They should decapitate that sleazebag!

Anonymous said...

I am not sure I understand the lawsuit. Did the claiments put too much stock of their own company (Countrywide) into their 401k's? It should be known since Enron that this is an exceptionally bad idea: In bankcruptcy, you lose job and funds. If that is the case, the lawyer probably tries a McDonald trial: They should have said that coffee is hot; and I hope the lawyer loses. If, on the other hand, Countrywide conspired with any seemingly independent fund on their 401k option list to divert money in the company, the deciders should be held personally responsible, with their wealth.

michael said...

they were risk takers.

Owner Earnings said...

A cat jumped on a hot stove once. It never jumped on another stove again.

Company stock should not be allowed in 401k's.

keith said...

They're saying that if Mozilo knew enough to dump hundreds of million in shares, he knew enough to be honest with the market and employees on how bad the company was tanking

but in the end, like failed housing gamblers and current Countrywide depositors and shareholders, people are responsible for their own financial decisions. If the CEO is dumping shares and hasn't bought a share for 10 years, it means he has no confidence in his company.

Or they should have just read HP

Meanwhile, I hope some of 'em go do a sit-in in Mozilo's office at 2pm on Friday.

Shakster said...

Flippin IDGETS.

ace said...

I found this great photo of the orange man and this buddies at the CFC Jail.
The orageman in Jail
Very Funny


http://www.flickr.com/photos/libertaddigital/1275421269/

keith said...

HP favorite Diana Olick at CNBC reported on our Countrywide foreclosures post during this Paulson Smacks Mozilo report:

http://www.cnbc.com/id/15840232?video=512522361

And then she did this interview with Orangelo himself

http://www.cnbc.com/id/15840232?video=512686066

Anonymous said...

Shades of Enron

Ides of September

No matter which way you view the issue this is all a slow motion train wreck we are watching, everyone needs to make sure the are not sitting two closely.

CFC employees, who more so than anyone should have known better because they were manufacturing this toxic sludge everyday, have no leg to stand on here. Take the hit, realize you were willfully blind and find a new line of work and less parasitic please, that usually makes your employment more stable when your helping someone and not just feeding off of their ignorance.

NO SYMPATHY HERE

Anonymous said...

A classic case of sheeple making another baaaaad decision.

Anonymous said...

I'd show up early, take a big buffalo chicken dump on his desk. Good morning!!

Anonymous said...

ENRON2

keith said...

Anyone out there stupid enough to put more than 5% of your company's stock in your 401k by the way?

It's tough to save stupid people from themselves

Hopefully a few of 'em will be stupid enough to do a Mozilo office takeover Friday at 2pm

Go out with a BANG! Countrywide employees. Maybe release a greased pig in the hallways that day too

I would.

Anonymous said...

Sorry KEEFER. Gotta disagree with you here buddy. This is the same bullshit I heard with Enron. If you invest in a 401k and put your eggs in your employer's basket...well shit you are one dumb sunvabitch.

A fool and his money are soon parted. Damn that saying just holds true over and over and over.

I have absoluely 0 sympathy for these employees and hope a judge tells them to fuck right off.

Anonymous said...

I am a Countrywide Employee, and let me tell you--"Orangello" wouldn't be caught dead anywhere near employees right now...He's hiding out somewhere--what a coward!!
If he had ANY nuts and ANY conscience, he would step up to the freaking plate and put his $$ where his mouth is. I wish it were as easy as marching down to his "corner office", but no such luck Keith.

Anonymous said...

While I am not certain as to the specifics with the CFC 401k's, many 401k's will only contribute company stock and/or only match if you purchase company stock. If that is the case, I would also have to figure that they make you keep it for a number of years before you vest. So, it may be the case that these people really did get f'ed and did not necessarily want to put all their eggs in one basket.

Also, while I have only participated in 2 401K's thus far, I have never been given the opportunity to invest in ANY ONE stock, unless of course, mutual funds are considered a single stock.

Vectorz said...

To Countrywide employee: I realize you're in a crappy situation but when it comes down to it, you only take care of #1 (yourself). Nobody said being your boss means they have to be your financial advisor also. You should've known to be responsible for yourself. I'm sure if the tables were turned and you were at the helm, you wouldn't just dish out your cash to ill-advised employees.

Anonymous said...

am I supposed to feel sorry for people who lose money when they pushed these toxic loans on people? how did they reconcile the loans they were making and the fundamentals of their stock?

k.w. - southern ca. said...

I'll have to agree with the blogger who stated that the CFC employees are on their own here.

They had ample warning that things were collapsing within the housing market since 2005, yet they kept themselves vested in the company stock.

However, I due believe that Mr. Mozilo should be somewhat accountable as well, since the money he cashed out is also partially the employees.

We'll see where this all goes, but like Enron, I suspect the employees will be left without a pot to p*ss in, and the top brass will go out once again with platinum parishoots.

FORECLOSUREBOY said...

ez to find mozillo.

just check sattelitte photos for bright orange speck in $10,000 suit.

Anonymous said...

Mozilo = Frobisher

Anonymous said...

For once get Angello Mozillo's name right:

"Orange-jail-clothes Mo' Billzo".

countrywide headhunter said...

I'm going out to buy a pitch fork and march in front of the companies headquarters on friday demanding mozillo resign.He has cost me 100000 already in my 401k account, SOB.

Paul E. Math said...

Yes, people who put all their 401k money into CFC were stupid. But they weren't greedy.

Employers always encourage people to buy as much company stock as they can and they make it very easy to do so.

A pr&ck like Orangelo shouldn't be selling his personal company stock and implementing policies which encourage the less sophisticated to do the opposite - it's wrong. For this, that fake-bake bastard should be shot with a bowl of his own sh#t.

Anonymous said...

"If he had ANY nuts and ANY conscience, he would step up to the freaking plate and put his $$ where his mouth is. I wish it were as easy as marching down to his "corner office", but no such luck Keith."

The camera crews seem to be able to find him pretty easily; wait till the next camera crew shows up and follow them to Mr. Orange.

Anonymous said...

As much as Mozilo is a POS I find the "vicitms" of his scheme to be the greater evil. These people all fell for the golden words poured in their ears. They should have been at least curious to know how condos that should cost 2 years income of a new college graduate (about $75K) priced at $300K in some markets.

I have no sympathy for get rich quick scams or the suckers that buy into them. They got what they deserved for being partners in crime with Mozilo.

bickerer said...

Lawsuits are good for punishing companies but not so good for compensating plantifs.

This is cause the lawyers, being as low as orange dude, cook the books on their accounting to 'spend' 80 percent of the trappings, typically.

Now this spending of course includes plenty of 500 dollar lunches and I imagine also loads of cash are offloaded (maybe a better term is laundered) and retrieved another day.

SeattleLuxuryCondoRenter said...

Countrywide is the "preferred lender" for many of the condos currently under construction here in Seattle.

People already have their deposits paid but what is going to happen when it comes time to close on the unit and Countrywide is toast? Will the other lenders want to lend on an overpriced condo?

Any thoughts Keith?

Anyone?

Anonymous said...

If their 401k is similar to mine, the company matches with company stock. My 401k also has a number of mutual fund choices. Ever since Enron and the changes in the rules, I can, and do, immediately click my stock over to a money market fund. I don't care what company it is...I mean ..maybe keep a hundred or so shares, but click the rest over.
You can bet, if I worked at CFC, I would be a clickin'...

PJA said...

Time to sing to the SEC / FBI.
I imagine that many employees should have been aware of improprieties many moons ago. They should have stood up yesterday, not cried today.
Ultimately they were part of an organization that aided/abetted in a causing an epic financial crisis. They are not the only ones affected by it - there are many worse off then overpaid tonic salesmen/women. Donate what's left of your 401(k) or your remaining paychecks to them.

I vote that you stand by your beleaguered CEO and paint yourselves orange this Friday!

TM said...

The company I work for limits the amount of employer stock that can be added to a 401k. I naively thought all companies did that nowadays.

Why am I not surprised if CFC had no such limit in place.

Anonymous said...

he's a dirty freakin sleazebag-
just look at the guy-
think he cares- nope

gonna run witchyo money and reinvest into another bubble someplace else

Anonymous said...

I checked out countrywide's website;

it also says they are hiring!


here's what they say about their 401k;


""401(k) Plan:
The Countrywide 401(k) Savings and Investment Plan allows eligible employees, age 21 and older to begin investing for retirement immediately upon hire. Eligible employees can contribute up to 40% of their pay (pre-tax) in any of the 19 investments available. After one year of employment, Countrywide makes a matching contribution equal to 50% of the first 6% contributed. Matching contributions are made with Countrywide common stock. Company contributions are subject to a five-year vesting schedule.""

My 401k has a five-year vesting schedule for company contributions, but I can still click over the company stock into a mutual fund.

Anonymous said...

Not risk takers my a$$, they undoubtedly had 100% of their 401(k)s invested in CFC shares. Did anyone learn anything from Enron!?
---------------------------------

ah, but this time CFC would be different!

Anonymous said...

Sorry KEEFER. Gotta disagree with you here buddy. This is the same bullshit I heard with Enron. If you invest in a 401k and put your eggs in your employer's basket...well shit you are one dumb sunvabitch.
---------------------------------

No, you are dumb if you put all your eggs in one basket and you don't pay close attention to that basket and don;t stay grounded in reality. If you have seen your 10,20, or 30k 401k investment grow to 1M, it is time to take some off the table!! what are you going to wait for, 1.2M??

Anonymous said...

There is no way orangelo is coming into work nowadays. Way too risky. I bet he is off "securing other investment in the company".

Anonymous said...

If he had ANY nuts and ANY conscience, he would step up to the freaking plate and put his $$ where his mouth is.
----------------------------------

exactly. if he was so bullish on CFC, why not take some of that stock sale money and buy back in now that the price is 50-70% of what he sold at......

Anonymous said...

This is a great idea. Although Im sure Orangelo won't get within 100 feet of the serfs.

Anonymous said...

Hey -

a) 60,000 good Americans collect blood money for the selling of fraudulent mortgages

b) 240 million good Americans (80 percent supported the war in Iraq in 2003) collect blood money for the raping/pillaging/murder of the people of Iraq

I can't think of a nation of people in history that has deserved more the incredible asswhipping the American people are going to get over the next 5 to 10 years.

Bend over and drop your pants, bitches - God has a lesson he wants to teach to each and everyone of you.

keith said...

Not one Countrywide employee will have the balls to do this

Just like not one Bush Administration official had the balls to stand up against invading Iraq

There are no leaders anymore. Just followers.

And look where that got us

Anonymous said...

Mozilo would of been accused of insider information violations if he had advised his employees to dump their stock . The only information the employees were entitled to was the information that Mozilo said in public to all potential stock buyers or sellers .

Aside from the employee issue ,(which they might have some legal points ) ,I believe there is a issue regarding Mozilo dumping his stock while talking up his Company around 2005and 2006. Once he dumped all the stock that he wanted to , than all of a sudden Mozilo started disclosing the bad state of affairs with his Company and the market in general .It would be hard to believe that a CEo of a lending institution would not be aware of the doom that was falling on his Company alot earlier than his disclosures

Anonymous said...

Anonymous said...
Hey -

a) 60,000 good Americans collect blood money for the selling of fraudulent mortgages

b) 240 million good Americans (80 percent supported the war in Iraq in 2003) collect blood money for the raping/pillaging/murder of the people of Iraq

I can't think of a nation of people in history that has deserved more the incredible asswhipping the American people are going to get over the next 5 to 10 years.

Bend over and drop your pants, bitches - God has a lesson he wants to teach to each and everyone of you.

September 13, 2007 5:47 AM
-----------
You wish. The average everyday American has nothing to do with profiting from the Iraqi tragedy. If it was any "strongman" who had caused all the human suffering in Iraqi there would be world outcrys. It is only the military industrial complex of the WORLD that is profiting from the Iraqi Tragedy, not Americans.

SOLN: All future wars are fought by the world leaders themselves in a WWE cage fight to the death smack down. IN this case it would have been Saddam vs. Dubya. That way the average citizens of the nations in conflict do not suffer from the ignorant decisions of their leaders. Whether elected or not, leaders become very imperial in their decision making unless THYE suffer the direct consequences of their actions.

So spew your venom at the world leaders that are fighting/funding the Iraqi conflict either directly or via proxy. They are the ones that deserve all of our wrath.

As for the CFC employees, I agree with you 100%, they deserve everything that comes there way from their exploitation of others.

Stuck in So Pa said...

Who in their right mind keeps their 401K in their own company's stock. Haven't these people heard of diversification? My company, after an employee has one-year full time, kicks in 50% of the employee's (up to 15%) pre tax
contribution, in cash! A separate management company, hired by the company, runs our 401K, and offers a choice of almost two dozen different world wide funds to choose from. You can also take the money out at any time and manage it yourself. I can't believe CFC employees were that stupid. Too late to cry now!

Happy Homedebtor said...

Stuck in So Pa said...

"My Company has an absurdly generous 401K"
----------------

Who the hell do you work for? :O

Industry standard is 50% up to 6% (IE they give you 3%)...

Anonymous said...

Many 401ks only match with company stock. And sometimes you are locked out of transferring that stock into another fund ... I had a job like that ...