Angelo Mozillo To Be Sued By US Government
Couldn't happen to a nicer crook…
Nearly a decade after Countrywide was sold to Bank of America in what has become the worst M&A deal of all time, bar none, having resulted in tens of billions of legal charges for Bank of America shareholders, the most recent of which was revealed also minutes ago when Bank of America was said to reach a record $17 billion settlement with the government over the sale of mortgage-backed securities, moments ago Bloomberg announced that none other than Agent Orange himself, Angelo Mozilo, is about to be sued. Again, only this time the lawsuit may actually not be tossed or result in yet another DOJ trademark wristslap.
- U.S. SAID READYING LAWSUIT AGAINST MOZILO IN COMING MONTHS
- U.S. SAID PREPARING TO FILE MOZILO LAWSUIT IN LOS ANGELES
More from Bloomberg:Government attorneys plan to sue Mozilo, Countrywide’s former chairman and chief executive officer, and other individuals using the Financial Institutions Reform, Recovery and Enforcement Act, said one person with knowledge of probe. The law, approved by Congress in 1989 in response to savings- and-loan scandals, gives prosecutors 10 years to bring cases and has less stringent liability requirements than criminal charges.
While U.S. prosecutors have notified lawyers that their clients are targets of civil cases, any suit against Mozilo and other individuals may be more than a month away, one of the people said.
The Justice Department has been focused on wrapping up a FIRREA settlement with Bank of America Corp. for about $17 billion over mortgage bonds inherited from its 2008 acquisition of Countrywide and 2009 purchase of Merrill Lynch & Co. The accord, which may be announced as soon as tomorrow, will penalize the Charlotte, North Carolina-based bank for how securities were marketed to investors, people familiar with the matter have said.
Mozilo said he has “no regrets” about how he ran Countrywide, according to a June 2011 deposition he gave in a lawsuit between the mortgage lender and bond insurer MBIA Inc.
Note: If you're reading this and are not yet a member of Peak Prosperity's Economy Wonks Group, please consider joining it now. It's where our active community of economic enthusiasts share news and engage in debate regarding all things economic. Simply go here and click the "Join Today" button.
So they threw someone out the sled to slow the wolves down.
As noted in the link you posted, and like the original round of charges and fines levied against Mozilo involving zero jail time and largely paid for him by BofA, the new charges are quite likely to mean zero to Mozilo's actual life and lifestyle, and are really just for PR's sake. They attempt to maintain the pretense that justice has been in any way served after the massive Wall Street frauds and thefts that culminated in the 2008 ponzi collapse. We still have and will have virtually zero crooks sent to jail.
From the article:
"But why wait so long? [to bring new charges against Mozilo] Well, before you go high-fiving Eric Holder who is about to arrive in Ferguson, it turns out that the government seemingly waited so long just so it would avoid filing a criminal case against the Moz. As it stands he will merely be slapped with a few civil charges, and promptly settle for a few basis points of what BofA paid him for Countrywide."
I had an online conversation a couple of years ago with an investor/mortgage broker who said he had done a ton of business with Countrywide and been a friend of Mozilo and hung out at gatherings at Mozillo's house in the runup to the crisis. He claimed the original charges against Mozilo were a bunch of baloney that were filed simply because they needed to make a scapegoat of someone, and Mozilo was actually really quite a nice guy. Mozillo would have rather defended himself, but saw the witchhunt writing on the wall and just settled to be done with it. According to him, Mozillo had sold the ($120+ million) in Countrywide stock in the run-up to the BofA merger while telling BofA and Countrywide shareholders there was no problem at all at Countrywide simply because he needed to put his kids through college.
He said Mozilo the CEO had known nothing about the mass mortgage fraud going on at Countrywide, and had just said the kind of positive things about Countrywide that any CEO would have said in that situation to support the company in the time before the merger. My comment to him was that, maybe at a personal level Mozilo seemed like a nice guy – after all, most con men and many criminals and crooks do – it's part of the skill set for their occupation. But I told him as far as I was concerned, while he, the mortgage broker, may not have done anything wrong, his comments were a great example of crony capitalism in action, since Mozilo has received similar support from some peers: those with aligned business "interests" ripping people off and then providing each other with immoral support all the way to the bank, and reinforcing an absurdly lame, completely rationalized view of their theft.
This morning from zerohedge: Sorry, Angelo Mozilo Can't Be Sued: He Is Sick
He should be sentenced to a life term at Mal-Wart minimum security consumer prison. Then they should take his bronzing gel away. Because nobody wants be greeted by somebody singing , "Money, how I luv ya, how I luv ya, my dear old Money", in orange face.