June 25, 2008

[UPDATE] FLASH: COUNTRYWIDE FRIED - ILLINOIS AND CALIFORNIA FILE LAWSUITS AGAINST MOZILO AND COUNTRYWIDE, WASHINGTON STATE TO PULL LICENSE


"Countrywide's conduct has contributed to the high number of foreclosures in Illinois and caused significant harm to the public, the market, and scores of Illinois borrowers and homeowners"

- The State of Illinois, from their civil lawsuit announced today against Countrywide Toxic Mortgage and Angelo Mozilo

(Meanwhile, screwed Countrywide shareholders vote on unloading this cancer to BofA later today...)

[UPDATE - CALIFORNIA JUST FILED THEIR LAWSUIT AGAINST COUNTRYWIDE JUST NOW. TWO STATES NOW IN, 48 TO GO. AND THE NOOSE TIGHTENS...]

[UPATE 2] - WASHINGTON STATE TO FINE COUNTRYWIDE AND ALSO PULL THEIR LICENSE

[UPDATE 3] - DESPERATE COUNTRYWIDE SHAREHOLDERS, HAVING LOST ALMOST EVERYTHING THANKS TO INSIDER-TRADING MOZILO, APPROVE FIRE SALE TO BANK OF AMERICA. BUT B0fA MOST LIKELY GOING TO WALK AWAY FROM THIS CANCER. NO, MAKE THAT RUN AWAY.

[UPDATE 4] - ANYONE SEEN ANGELO? LAST I HEARD THERE WAS AN ORANGE MAN IN A WHITE FORD BRONCO ON THE WAY TO MEXICO.


32 comments:

Anonymous said...

Countrywide's board, which has unanimously backed the transaction, needs stockholders to vote a majority of the company's outstanding shares in favor of the deal.

Legg Mason Capital Management Inc., which now holds the largest Countrywide stake at 14.7 percent, plans to vote its shares in support of the buyout, spokeswoman Mary Athridge said Tuesday.

It's widely expected that most other Countrywide shareholders will follow suit.

"It's the only option they have at this point," Paul J. Miller Jr., an analyst at Friedman, Billings, Ramsey & Co., said Tuesday. "It's the last chapter, it's over with, and now Countrywide's problems become BofA's problems."

http://news.yahoo.com/s/ap/20080625/ap_on_bi_ge/countrywide_bank_of_america

Anonymous said...

Don't do it.....

Anonymous said...

Not defending Countrywide, but how about all of the other scumbag lenders, brokers, and banks?

Anonymous said...

January 19, 2009.

Bush pardons Countrywide, Mozilo and Dick Cheney and all GOP Congressmen.

Orange Orange Orange Orange.... said...

Orange Orange Orange Orange....

Anonymous said...

More Mozilogate, CW now sued by CA:

bloomberg link

Anonymous said...

IL is just sore that their property tax rolls have crashed. They could care less about the "people".

No tax revenues = no pay increases for BS administrators that do BS "work".

No new cop cars.

No BS projects.


Whew....thank God...the insane govt. spending needed to be halted.

California attorney general sues Countrywide Financial said...

THEY ARE COMING FOR YOUR THUMBS NEXT MOZILO. YOUR PASSPORT IS ABOUT TO BE REVOKED AND YOUR ASSETS FROZEN.

THE SHEEPLE KNOW WHO YOU ARE AND THEIR HEARTS ARE FULL OF HATE FOR YOU.

PLEAD GUILTY NOW AND TAKE A PLEA BARGAIN SCUMBAG.

THE FAT IS IN THE FIRE YOU ARE DOOMED.

California attorney general sues Countrywide Financial

By Alex Veiga
Associated Press
Article Launched: 06/25/2008 08:15:10 AM PDT


LOS ANGELES - Countrywide Financial used misleading advertising and other unfair business practices to trick borrowers into taking on risky home loans they didn't fully understand, the California attorney general's office alleged in a lawsuit filed today.
The lawsuit - filed on the same day Countrywide shareholders were scheduled to vote on the company's takeover by Bank of America - stems from information gathered under subpoena after the state launched a probe last year into the troubled company's business.

It also came on the same day Illinois attorney general filed a lawsuit alleging Countrywide engaged in "unfair and deceptive" practices to get homeowners to apply for risky mortgages far beyond their means.

In the complaint filed in Superior Court, California Attorney General Jerry Brown asserts that Countrywide violated California's unfair business practices and false advertising laws with just about every action it took to market and originate some of the most popular - and potentially risky - types of home loans in recent years.

"Defendants viewed borrowers as nothing more than the means for producing more loans, originating loans with little or no regard to borrowers' long-term ability to afford them and to sustain homeownership," the state claims in the suit, which also names as defendants Countrywide Chairman and CEO Angelo Mozilo and David Sambol, the lender's chief financial officer.

A call to Countrywide seeking comment was not immediately returned.
The state claims the company misled customers about the workings of home-equity loans and some types of adjustable-rate mortgages, including pay-option loans, "hybrid" interest-only loans and low-documentation loans.

These loan types, which many other lenders offered during the housing boom, featured low initial payments and the potential for sharp increases after a few years. They now account for a large portion of the mortgages that have become delinquent or gone into default in the past year.

The lawsuit alleges Countrywide obscured the potential risks in the loans, misled consumers about payment terms, prepayment penalties and other obligations, and told borrowers they would be able to refinance before the interest rate on their loans adjusted.

"Defendants knew, or by the exercise of reasonable care should have known, that these statements were untrue or misleading at the time they were made," the lawsuit states.

As the nation's largest mortgage lender and servicer, Countrywide has been under scrutiny by federal and state authorities. It also faces numerous other lawsuits related to its lending practices.

The Calabasas-based lender agreed in January to sell itself to Bank of America for about $4 billion in stock.

The acquisition, now valued at around $2.8 billion, received clearance from the Federal Reserve earlier this month.

Assuming shareholders give their approval, Charlotte, N.C.-based Bank of America has said it could close the deal as early as July 1.

Comments from paper:
1
It is about time Countrywide and other banks are made accountable for their illegal practices. They knew that their busniess methods will create a lot of pain and suffering, but the executives were just looking at the fat salaries and bonuses instead of practicing honest traditional banking practices.

Some of the CEO and board chair people deserve not only fines but also jail time. That will send the message that illegal practices just for pursuit of mega dollar salaries have real consequences.
2
Didn't Senator Dodd get a 'special' financing deal from Countrywide? You know, the one who's now trying to pass the bailout - which will totally aid banks and lenders?

Casey Serin said...

Two of the properties I fraudulently purchased were financed with loans from Countrywide.

I ended up initially ripping them off to the tune of a half-million dollars, before they foreclosed on me. I subsequently invested that money in Jamba Juice drinks for a sweet 100% loss... :-p

Anonymous said...

Hmmm lets see...

I set up bailout for me...

I set up Nice cushy mortgage for HE..

He approves bailout for me...

I look evil to you...

They look nice to you...

They purchase me so no one looks evil...

My bailout passes my problems off to you...

Some of you are happy your "bailed out" until you try to sell your home...

Some of you are pissed I bailed some of you out...

I no longer exist.. so one one can be mad at me.

Now you are to blame for your own problems...

They are happy with me and now have three times as much equity and property that you paid for...

He is happy because his million dollar home retains its value...



We are all happy with the outcome...





And the helicopter is still flying around....and the orange man moves to Dubai..

Anonymous said...

BofA must be on crack! Damn...run away from this deal and don't look back, crap with a ribbon, is still crap!

Anonymous said...

Illinois & Calif are sort of small potatoes compared to this:

June 25 (Bloomberg) -- Bank of America Corp.'s $3 billion takeover of Countrywide Financial Corp. will be financed by 138 million tax-paying Americans.

Bank of America, led by Chief Executive Officer Kenneth Lewis, can use tax write-offs to pay for Countrywide, the country's biggest mortgage lender, said Robert Willens, a former managing director at Lehman Brothers Holdings Inc. who now runs his own accounting firm. Taxpayers may pick up about $5 billion of Countrywide's losses over 20 years, he said. Countrywide shareholders approved the sale today.

``Ken Lewis got a break,'' Willens said. ``What these losses do is reduce the effective cost of the deal so the headline price isn't really what they're paying. It's entirely possible that the entire equity purchase price could be financed by tax savings.''

The tax benefit may explain why Lewis continues to back the purchase even as analyst Paul Miller of Friedman, Billings, Ramsey Group Inc. said he should ``walk away.'' Miller, the top-ranked analyst in Bloomberg's latest survey of stock-pickers, estimates Countrywide will lose as much as $33 billion on bad home loans. Lewis said this month Bank of America, the biggest U.S. consumer bank, will come out ahead even if home prices drop by more than 25 percent in the next two years.

``Sometimes that's a reason why companies that don't look like they're worth much get acquired,'' said Bob McIntyre, director of the Washington-based Citizens for Tax Justice. ``It's to keep their tax assets from being wasted.''

http://tinyurl.com/6m772g

And that's why.

SENATE FOA COMMITTEE said...

NOW MY HOUSE DOES MORE THAN PUT A ROOF OVER MY HEAD...

IT'S AN ATM MACHINE TOO!!!

DOPES!!!

SUZANNE!!!

ANGELO!!!

DODD!!!

CONRAD!!!

SWAN!!!

ANON!!!

Anonymous said...

The only thing to do is place mortgage brokers on cattle cars and send them all to Iowa.

Then take all the Wall-Street Jews and send them by bus to Iowa.

Feed them all into large wood chippers, then place them in low hit ovens browning them just enough to kill bacteria, and finanly spread them on the ethanol fields to increase production.

Anonymous said...

Most of you are unaware of this but on 9/11 there was a third steel structured tower that collapsed at free fall speed, perfectly symmetrically and directly downward into it's footprint. This was a 47 story building that collapsed in 9 seconds - perfectly uniformly collapsed that is.

The three World Trade Centers that collapsed are the only steel structured skyscrapers to collapse due to fire in history and there have been many fires in steel structured towers throughout history. So they are a glaring statistical anomoly.

Here is the collapse of World Trade 7. Remember, this is 47 stories collapsing in 9 seconds:

9 Second Video of WTC7's Collapse

Go ahead, watch it, it's only 9 seconds out of your day.

What you also may not know is that NIST - the National Institute of Standards and Technology has been having a very difficult time explaining this collapse. They've been working on the report for 5+ years and continue to delay the report. Well, a preliminary version of the report has been leaked and you can read it for yourself here:

Leaked NIST Report on WTC7

A Direct Link to the Leaked Report Documents


If you find the collapse of World Trade 7 intriguing you may find the many other questions about 9/11intriguing too:

Painful Deceptions

BTW - Have any of you wondered what happened with those anthrax attacks that occured immediately after 9/11? Don't you find it strange that there has been no follow up on that story in the media? The FBI has still not found the perps even though the anthrax was Ames strain weapons grade anthrax that was developed at Fort Detrick.

That is, an inside job.

Anonymous said...

This deal is being brokered behind the scenes by the Fed and it will go down just like the Franklin deal with ML.

B of A expects CFC lawsuits to top out a $1.4 billion and this is reflected in the price. However, I don't think B of A expected 3 states AGs to be filing lawsuits.

If the deal goes through it could seriously hurt B of A which of course means a Fed bailout for B of A. Therefore, B of A not worried!

Anonymous said...

Keep voting Democrat everyone!!

Thank You Att. gen Brown! said...

Just sent a thank you e-mail to Calif. State Attrny Gen. Gerry Brown for slipping the noose over Orangemans head...

Next, the blindfold...

I suggets the rest of you in CA send State Attroney

Brown a congratultory e-mail urging him to prosecute Countrywide and Orangello to the maximum legal extent he can.

It REALLY Feels Good to send those mails...

Ange, you cashed your last check...

tick, tick, tick

Anonymous said...

I have written the Fed with an offer to buy out B of A using my Subway Franchise and a loan from the taxpayers.

Anonymous said...

It is true CFC fraudulantly enticed borrowers into loans. I contacted CFC in 2005 about a mortgage loan because I heard a radio advertisement for 4.5% fixed for 10 years. When I contacted CFC I found out that the rate was not fixed and was tied to an "index".

When I confronted them they admitted that the rate was not fixed and would likely increase after 2 mortgage payments as mortgage rates were going up (thanks to Helicopter).

Good folks don't know that "fixed" doesn't really mean fixed like it used to. To CFC it means "fixed" with an "index" so your montly payment will adjust monthly (and of course it moves up quicker than it moves down).

This is fraudulant lending!

Anonymous said...

So, you think BoA can use this as a club for a lower price? $2? $0?

Here are the magic words: Material Adverse Event

I think prosecutions might count. Indictment of the CEO definitely counts.

CW shareholders are gonna get the Bear Stearns treatment.

MOZILO-CW DEATH WATCH UPDATE: said...

MOZILO-CW DEATH WATCH UPDATE:

Dear Angelo, you life, as you have known it, is ENDING. Maybe you can learn a new trade in the joint?

Read and WEEP you fucking loser:

WASHINGTON STATE WEIGHS IN:

Gov. Gregoire accuses Countrywide of discriminatory lending
The Associated Press • Published June 25, 2008

Comments (5) Gov. Chris Gregoire has accused the Countrywide Financial company of discriminatory and predatory lending practices that targeted minority borrowers.

She told a Wednesday news conference at the Urban League office in Seattle that the Washington Department of Financial Institutions is seeking to revoke Countrywide's license and impose a $1 million penalty.

There was no response right away to a call to the company's headquarters in Calabasas, Calif., for comment on the governor's action.

In addition, lawsuits were filed Wednesday by the attorneys general in California and Illinois accusing the Countrywide of using unfair practices to get homeowners to apply for risky mortgages.

And the same day Countrywide shareholders have approved a takeover by Bank of America.

BYE BYE ORANGELLO. ENJOY HELL.

Anonymous said...

January 20, 2009

Obama pardons all DemoRat Congressmen and Wall Street thives.

Edgar Alpo said...

Remind me to never put money with Legg Mason. Can you spell "bag holder"? How stupid or corrupt do you have to be to hold CFC all the friggin' way to the bottom?

BigDaddy said...

I am VERY suspect of the timing of these lawsuits, just ONE day AFTER the Senate passed the BOA bailout legislation.

That legislation needs to be VETOED. How much more evidence of corruption and bribery do you need?

Now we know why BOA was more than happy to buy CFC. They already had a paid off Senator to bail them out.

This is beyond contempt.

Anonymous said...

can you flip that countrywide logo upside down?

Orangemans LAST STAND said...

Today’s PIG is tomorrows BACON…(HST)

Orangemans LAST STAND

Next Stop: Federal Prison

At Countrywide's End, an Emotional CEO

Security was extremely tight at the event, held at Countrywide's campus-like headquarters in suburban Calabasas, Calif., northwest of Los Angeles.

The morning of the meeting, the Attorneys General of California and Illinois filed separate civil suits against Mozilo and Countrywide, alleging the firm used deceptive tactics to push homeowners into complicated, risky, and expensive loans so the company could sell as many loans as possible to third-party investors. said. "We've made the dream of home ownership available to everyone regardless of ethnicity. We've helped millions of people in good times and bad." Security guards in dark suits and earpieces roamed the premises.

Mozilo, his dark bronze skin contrasting sharply with his white hair and shirt, gave a short speech as the votes were being tallied. "Despite widespread and often unfounded headlines of the past year, Countrywide has made a positive impact on the country," he said. ." At one point Mozilo got emotional, reached for a water bottle and said "Excuse me, this is one of the drawbacks to being Italian."

A subdued Angelo Mozilo got choked up at the last shareholder meeting for Countrywide Financial. Mozilo, a butcher's son who co-founded Countrywide nearly 40 years ago, called the event "clearly an end of an era" and promised Bank of America (BAC) shareholders they would "reap the benefits of what we have sowed." Security guards in dark suits and earpieces roamed the premises.

Shareholders were asked to show identification before entering the small auditorium where the meeting was held. "If any attendee becomes disruptive…we will ask Countrywide security to escort the attendee from the meeting." Mozilo entered the auditorium quickly from the side of the stage just before the meeting began.
Shareholders Left Wanting More
The entire meeting lasted barely 18 minutes and guests were promptly escorted from the meeting room. Scott Adams, a regional coordinator with the AFL-CIO's pension fund, came prepared with a speech he did not get to read. Adams said the union had unsuccessfully pushed for resolutions giving shareholders the ability to vote on executive pay packages. Adams scoffed at Mozilo's claim that Countrywide's efforts had kept 143,000 troubled borrowers in their homes.

Mozilo, promised Bank of America (BAC) shareholders they would "reap the benefits of what we have sowed."

What happened at meting video: http://www.cnbc.com/id/25374492

Anonymous said...

BOA is all over this cause they get to jettison all the risky crap upon the taxpayers and keep the cream of the crop.

We need fu*king torches and pitchforks folks - it's the only thing that'll work!

Anonymous said...

The CountryWide bailout must be a good thing because the bill was introduced by Democrat Chris Dodd and endorsed by The Messiah Obama.

Reality said...

"Remind me to never put money with Legg Mason. Can you spell "bag holder"? How stupid or corrupt do you have to be to hold CFC all the friggin' way to the bottom?"

Probably because they owned so much of the company that they were practically the market for the company's stock. LOL. Typical recipe for star fund managers: find a bunch of medium to small companies, buy up a big chunk of the total outstanding shares to drive the prices up, then keep buying when you get more investors' money that are attracted to your portfolio performance. Yes the one way bet will give a period of stellar performance just like most ponzi scchemes. Cash bonus checks as quickly as they come! When the inevitable collpase comes, jump ship.

Anonymous said...

Lawsuits? Nothing to worry about. Chris Dodd no doubt is writing legislation to give Bank of America/Countrywide immunity from lawsuits. The whores in congress did it for the telcoms, and they'll do it for mortgage fraudsters.

Anonymous said...

Mozillo's orange skin will blend nicely with that orange jumpsuit he'll soon be wearing.

Or one can hope. Personally, I think he's going to walk.