Friday, October 15, 2010

A Countrywide Betrayal


It seems as though Angelo Mozilo, in order to avoid going to trial, in which he surely would have been convicted on at least a few things, arranged for a settlement of 67.5 million dollars with the Securities and Exchange Commission in what are being called fines and penalties.

But here’s my problem with this agreement.  1) Mozilo doesn’t go to prison, which he ought to for having his loan officers write loans with junk fees and unstable option arms that would eventually reset and destroy people’s lives.  And 2) the SEC, a federal agency is now benefiting from all of these people’s losses.  That’s just not right!

When do the families, who have lost their homes to foreclosure because they were talked into these lending instruments meant for other purposes, get to be refunded at least a little of their money from Mozilo’s "fines and penalties?" 

So it looks like the taxpayers bailed out the banks while the agency that regulates Wall Street (and not very well I might add) gets the take, Angelo will still be floating around on his yacht somewhere with martini in hand, and the common person gets screwed!