January 19, 2008

Here's the congressional invite sent to Countrywide Toxic Mortgage's King of Insider Trading and Mortgage Fraud, The Orange Man himself, Angelo Mozilo


February 7th can't come soon enough.

Get that Jiffy Pop a poppin! And feel free to give Waxman a call (number below) with some suggested lines of questioning.

We've hoped and predicted for years that our corrupted Congress would hold hearings on the housing crash and corrupt Real Estate Industrial Complex in 2008, leading up to the election. And away we go. I wonder if Angelo will be taking the 5th?

Mr. Angelo R. Mozilo
Chairman and CEO
Countrywide Financial Corporation
4500 Park Granada
Calabasas, CA 91302

Dear Mr. Mozilo:

I am writing to request your testimony at a hearing on February 7, 2008, before the Committee on Oversight and Govemment Reform. The hearing will address executive compensation and severance arrangements for CEOs involved in the ongoing mortgage crisis.

According to recent press reports, if Bank of America completes its proposed purchase of Countrywide Financial, you stand to collect tens of millions of dollars in severance payments and other compensation. I request that you be prepared to provide your perspective on this reported pay package.

You should plan to address how it aligns with the interests of Countrywide’s shareholders and whether this level of compensation is justified in light of your company’s recent performance and its role in the national mortgage crisis.

The Committee on Oversight and Govemment Reform is the principal oversight committee in the House of Representatives and has broad oversight jurisdiction as set forth in House Rule X. An attachment to this letter provides additional information about testifying before the Committee.

If you have any questions regarding this letter, please contact Roger Sherman or David Leviss of the Committee staff at (202) 225-5051.

Sincerely,

Henry A. Waxman
Chairman

18 comments:

jazzmanferg said...

Now if we can only get an investigation into the Federal Reserve.

AMIGAUSER said...

I thought you were a Libertarian Kieth?

If a private organisation wishes to pay its excutives a certain pay structure, what business is it of The Seanate/Congress how much they pay.

Countrywide was massively profitable over the last few years, and so, those responsible have their fair share of the profits - would you rather Mozillo have been paid less and Countrywide make less money?

Anonymous said...

If I were Ange, I'd get on a plane out FAST. Detination unknown. No flight plan, Nothing.

The last train out of the station is leaving and there is not enough seats...

Anonymous said...

I CRAPPED MYSELF JUST READING IT...and I'm a nobody...

Anonymous said...

Waxman versus Orangeman

Anonymous said...

Waxman looking for a payoff. I'll bet Orangeman puts in the fix (cash bribe) and never even travels near Washington.

Any takers?

happy homeowner in the stix said...

Big deal, subpoena from Congress.

Wake me up when it is a subpoena from a state Attorney General. Especially one who has very public aspirations for the Governorship in his/her state.

Anonymous said...

This is the way we march the frog,
march the frog, march the frog...

Everybody now!!!

Malcolm said...

Come on Keith, you know that it's not the way this administration works.

In then end, Mr O will wind up getting the Presidential Medal of Freedom.

Victor said...

amigauser - The problem is that Countrywide didn't make all the profits the last few years. The supposed profits in the past few years were accounting games where they booked those profits early without taking into account the risk. That's what all the banks did and that's why they are taking the writedowns right now. They are basically admitting they never made those profits.

What if I bet someone that the sun doesn't come up again? And then through the night I announce that I was right, and I booked the winning wager as a profit.

It was inevitable the banks would lose money on their malinvestments, just as sure as the sun will come up the next day. Don't let the banks fool you into thinking this whole debacle was unpredictable.. as if they were caught up in a random earthquake.

Anonymous said...

Big deal, subpoena from Congress.

I agree with happy homeowner. I'd take the letter, crinkle it up, and then wipe my ass with it.

rom said...

I'm proud that Waxman is my rep! Go get 'em!

Unemployed ex-regulator said...

Hmmm, looking into executive compensation after the deal is done? They MUST be kidding, if that's all that Congress can come up with!

If I were Tangelo, I'd start worrying if Congress was holding hearings over the massive dumping of personally-owned stocks he and the CFO, COO, company economist, etc. engaged in, over the past few years.

They dumped, EVEN AS they were using CW stockholder funds to BUY shares to prop up prices to compensate for their sell-off.

If Congress wanted to get the truth, maybe they should subpoena Kathleen Brown, an attorney who was on the board of CW up until early last year why SHE stepped down.

Oh, she's also the sister of Gerry Brown, the CA Attorney General who announced that he'd be looking into issues with CW in a press release (ain't heard jack, yet: Gerry?).

Methinks she couldn't stand to witness the orgy of illegality that was taking place, and decided to get out of Dodge instead. I suspect such criminality is SOP for business, and Tangelo was considered too big to touch by regulators.

Gosh, it's just like the 1920's, with all the gangsters wearing business suits, the government 'enforcers' on the take, the 'don't rock the boat' and 'I see no wrong' mentality still thriving, etc.

I'm so glad our government has progressed so far since then!

Anonymous said...

Waxman must be looking for free financial advice from a successful investor has profited from no money down real estate. perhaps Carleton Sheets was unavailable.

sac'to watcher said...

Go, Wax-man!

Blatant Posturing said...

Wax on Wax off......bs at this point. Where was our leadership a couple years ago when all the bad loans were being given out?

The Tall Guy said...

Angelo will walk. Will definitely walk because:
(i)he planned it right
(ii)no one cares enough

The system is rotten, as well as its inhabitants. Letting the chimp do a 2nd run already proved that.

Just let it go and make sure you don't get bitten by what's coming. Once it is over, a hard lesson should be learned for a brighter future.

Adam Slowhand Smith said...

Just let it go and make sure you don't get bitten by what's coming. Once it is over, a hard lesson should be learned for a brighter future.

And what would make you think anyone actually learns ANYTHING from prior episodes? You mean like how people learned from the S&L debacle, Enron's run, or the dot-com bubble? Oh, yeah, the age-old mantra that says, "it'll be different this time".