January 28, 2008

FLASH; Facing an SEC investigation, Congressional inquiry and blowup of his buyout by BofA, Countrywide's Mozilo offers to forego $37 million


Nice try Orangelo.

It's all caving in for you now, eh?

BofA won't complete this transaction as agreed to. Countrywide will file for bankruptcy. Thousands will lose their jobs. You will be arrested for insider trading, Sarb-Ox violations and knowingly enabling mortgage fraud. And like Ebbers before you, those hundreds of millions of ill-gotten gains will be taken by the government as part of your fine.

And you will spend an awfully, awfully long time in prison.

Was it worth it?

Really, Angelo, was it worth it?

AP NewsBreak: Countrywide CEO Mozilo Will Give Up $37.5 Million in Severance Benefits

Countrywide Financial Corp. CEO Angelo Mozilo, under fire over the size of his potential payout from the proposed sale of his troubled mortgage company, says he is forfeiting some $37.5 million in severance pay, fees and perks he was scheduled to receive upon his retirement.

Damon Silvers, associate general counsel of the AFL-CIO, which operates a Web site that tracks executive pay, said that by giving up his severance pay Mozilo "seems to recognize that there's something wrong with this picture."

"It would be best if Countrywide and Bank of America froze all of his compensation until a thorough inquiry could be completed as to exactly what happened at Countrywide," Silvers said, referring to allegations raised in some shareholder lawsuits filed last year that the company failed to warn investors about the depth of its financial troubles.

Countrywide shares closed at $6.02 on Friday, 19.5 percent below what each share would be worth in Bank of America stock if the deal was closed based on the bank's $39.48 closing share price Friday.

25 comments:

Drunken UFO Pilot said...

I thought Oxballs Sorbet was the newest flavor of B&J's ice cream. Oh, Sarbanes-Oxley... never mind!

Frank@Scottsdale-Sucks.com said...

You can take one look at that guy and immediately know he's a scumbag without even needing to know who he is or what he did.

area 51 said...

If I were him, I'd be heading to some country that has no extradition treaty w/the US....

Anonymous said...

Now if he'd just give back the other 500 million.

Buzz Saw said...

The theft has already occurred. He cashed out stock options and borrowed from the FHLB. Hanging is too good for him.

Veronica Lodge said...

RE: Bank of America has maintained its intent to acquire Countrywide...

After the hostile takeover of Bank of America by NationsBank, the new "Bank of America" is has another target in its sites.

Yes, it's true. Bank of America still intends to "acquire" Countrywide.

The purchase price has just dropped by $37.5 million and it will keep on dropping.

Why should Bank of America pay for Countrywide when Countrywide can be acquired for next to nothing?

V.L.

Anonymous said...

BoA must be doing crack to even think of touching that hot potato!

common sense said...

Dude's orange!

Anonymous said...

One the eve of quarterly earnings comes this announcement....hmm.
He's afraid of upcoming prosecution. It's easy to give up something that you're not going to get anyway. Hey Countrywide, just go bankrupt and GO AWAY, please.
charlottemom

Anonymous said...

HANG HIM! It's people like him and his ilk that have destroyed this country. FUCKIN HANG HIM!

Anonymous said...

BoA will indeeed acquire CW, since they have already got the ball rolling, but it will be for $1, for the whole company, since that's the minimum amount that can go on a contract, and that's all CW will be worth anyway.

Anonymous said...

look at this!

A Best Buy (BBY) officer certainly has been cashing out of his options etc. at a pace faster than Mozillo ever did.

Anybody else think that it's time to short BBY?

Anonymous said...

I'd like to ask - Where was Sarbanes-Oxley? Where are/were the Big 4 accounting firms? Unless I am mistaken, I think you are going to see some shareholder suits under S-O (many already filed, I suspect), and also some of the Big 4 sued also for not sending up red flags long, long ago. Where are the accountants' duties here?

Anonymous said...

He looks like a textbook case of skin cancer - Yag!

onecitizenspeaking said...

And how many of you have spent your life building the biggest independent mortgage company in the world? Developing state of the art software? And being penalized for taking advantage of the exact programs sponsored by the Federal Reserve. Nobody seems to be mentioning the odios owners of Ameriquest who was forced to pay $325 million in fines to the states attorneys general and then be rewarded with an ambassadorship for being one of thethe largest contributors to the Republican party -- right, Mozilo is not a favorite of the current Administration which seems to be looking for a scapegoat.

onecitizenspeaking said...

And how many of you have spent your life building the biggest independent mortgage company in the world? Developing state of the art software? And being penalized for taking advantage of the exact programs sponsored by the Federal Reserve. Nobody seems to be mentioning the odios owners of Ameriquest who was forced to pay $325 million in fines to the states attorneys general and then be rewarded with an ambassadorship for being one of thethe largest contributors to the Republican party -- right, Mozilo is not a favorite of the current Administration which seems to be looking for a scapegoat.

Ate Up said...

A little off subject, but, I say for sure we invite Dopes and Andrew Hac to the convention. After all, they too have made Housing Panic a fun place to be.

Ruprecht said...

To give up $37 million that quickly and easily must mean he wants out in a hurry.
Why would he want to get out in such a hurry?


He's thinking to himself, "oh please can I just go now before they find more crap and change the terms again"

Ruprecht said...

http://tinyurl.com/2qz6yu


"My primary focus today -- as it has been for the past 40 years -- is to do what is in the best interests of Countrywide's employees, customers and shareholders," Mozilo said in a statement.

He neglected to add;
With 99.99% of that doing what is in the best interest of shareholder Mozilo, and the other 0.01% for everybody else.

How to lie for CEOs 101

Anonymous said...

[quote]
onecitizenspeaking said...
(rambling deleted...)
[/quote]

Anthony, is that you slumming with us bitter renters on HP?

Mitesh Damania said...

world? Developing state of the art software? And being penalized for taking advantage of the exact programs sponsored by the Federal Reserve.


0 down, cashback, stated income, ARMS, LEGS were bought by Wall Stret not Fannie Mae / Freddie Mac. These loans were sold by the investment bankers as SIVs.

Anonymous said...

No jerkoff, I do not post under anonymous and have nothing to do with HP.

I just feel that the media is portraying Mozilo as a criminal without stating what charges may be brought and how culpable he may be.

Why don't you check the list of major banks and other Wall Street operations that have been bailed out by the Fed before convicting anyone or denying him his due right for a lifetime of work.

Those Wall Street Wizards who got bonuses of between 40 and 160 MILLION when they should have been fired set the example.

Anonymous said...

Somewhere I read an estimate of his total parachute being about $115 million. So what happens to the rest of it?
Doesn't this come close to being an admission of guilt? - at least informallly.

Andrew Hac said...

OK... Joe6Pack & JaneZinfandel, let's get this simple fact into that fried-burger brain one more time.

Owning a house is not for every one in the planet Earth, particularly in the land of the Americano, AKA the land of the Snapper Turtle. If a person or a family are poor, ignorant, uneducated, illiterate, buck-teeth, obese, or looking like a piece of human crap, then that entity is not entitled to own a house, or allowing to think of owning a house, or even dreaming of owning a house. It is a privilege based on Senior Charles Darwin's famous theory: "You don't own jack if you ain't got jack..."

Furthermore, if that particular Americano had voted for "Little Boy + Fat Man" AKA "Dubya Shrub + Penis Shooter" in the last 8 years, then homeboy and homegirl Hill Billies should not consider a house as a place to live. His adobe is to be in the horse ban, the ass stall, or more fittingly, the Snapper Turtle lodge.

So, Hicks and Cracker Nutheads out there, the 64 millions dollars question is:

"Is the Americano roasted yet, and if not, how long before the Americano will be roasted slowly, nicely and juicely like a snapper turtle skewered on a Chinese bamboo stick from mouth to ass sizzling, fat popping on a bed of white hot charcoal ?"

Are we there yet ? Is Joe6Pack still breathing and kicking ???

renting in scottsdale said...

I love Andrew Hac. What a riot. This guy is always good for a laugh and makes my day!