I originally posted on this back in October, 2010 but left it as a draft for various reasons. Yesterday I heard that a criminal investigation had been dropped with few sanctions (i.e., no admission of wrongdoing, no jail time) just a $22 million settlement – sounds like the cost of doing business to me. Had he been a mere criminal he would at least be a felon and doing time.
The “little people” hurt by this malefactor and the network of mortgage bundlers on Wall St have walked and bonuses are back. How are you doing?
Case on Mortgage Official Is Said to Be Dropped
By GRETCHEN MORGENSON, Published: February 19, 2011
The closure of the case after two years of inquiry follows last October’s settlement by Mr. Mozilo of insider trading allegations made by the Securities and Exchange Commission. Regulators had contended that Mr. Mozilo sold $140 million in Countrywide stock between 2006 and 2007 even as he recognized that his company was faltering. Countrywide and Bank of America paid $45 million of Mr. Mozilo’s $67.5 million settlement, and he was responsible for the rest.
Without admitting or denying wrongdoing, Mr. Mozilo agreed to be banned from serving as an officer or a director of a public company. (italics machimon)
The conclusion by prosecutors that Mr. Mozilo, 72, did not engage in criminal conduct while directing Countrywide will likely fuel broad concerns that few high-level executives of financial companies are being held accountable for the actions that led to the financial crisis of 2008.
Hundreds of billions of dollars have been lost by investors while millions of borrowers have lost their homes. Few of the people who ran the institutions that contributed to the disaster have been found liable. Read more in the NY Times…
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$67.5 Million fruit of a diseased tree buys off US. Mr Mozilo was not found guilty of any wrongdoing and most of his “disgorged profits”will be paid by countrywide. Mr Mozila is a butcher’s son from the Bronx who made good.
He is “not guilty” of anything and will do no public service. He had the advantage of not being black or chicano and the Irish and Italians have been around long enough to have lived down their ethnic disadvantage. The fines are said to be a small portion of his worth.