Sunday, March 09, 2008
Hmmm... After last week's congressional inquiry and word that the Feds are now hot on his tail, perhaps a name change to "The Mess That Mozilo Made" might be in order.
If Easy Al didn't set the stage, Countrywide could never have made so many horrendously bad home loans and almost single-handedly brought down the entire business of mortgage lending.
The name stays as is.
This decision might come as good news to Rep. Elijah Cummings who grilled the tan one last week during hearings on the horrendously bad executives who are leaving with bags full of cash after driving their company's share price into the ground.
Why? Have a look at this Roxbury News video clip (hat tip H.C.) as Mr. Cummings begins his remarks with "This is a mess! This is a mess!"
Does he already have a blog?
Does he need any help coming up with a name for one?
Mr. Cummings went on to note:
I have listened here very carefully. I've heard things about curves, business practices, you make profit at one point, then you don't make profit. The bottom line is that people are being put out of their houses - people in my district. Read the front page of the Baltimore Sun today. I hope that the SEC looks at this all very carefully because, I gotta tell you, something doesn't smell right.Hmmm.... Apparently a few other government types didn't think things smelled right either because, just two days later, the Wall Street Journal reported that the Feds were wanting to have a look at the books at Countrywide.
No, not the Federal Reserve - the FBI. Securities fraud is somehow involved.
Gee, what was the tip-off? When the share price dropped like a rock just after the CEO completed sales of a quarter of a billion dollars in stock?
According to the original report($) in the WSJ:
The inquiry involves whether company officials made misrepresentations about the company's financial position and the quality of its mortgage loans in securities filings, four people with knowledge of the matter said.Well, that should give those Countrywide employees who remain a real shot in the arm. What was that wristband slogan? PROTECT OUR HOUSE!?
Or, maybe this little item from Purple America will boost their morale.
Now, that would really be The Mess That Mozilo Made!
This week's cartoon from The Economist: