Countrywide, BofA Protected by Taxpayers from Consequences of Actions
If you don’t know the difference between stated income and verified income, congratulations! You are qualified to run one of the largest sub-prime mortgage companies in the world.
Angelo Mozilo, former CEO of Countrywide Financial admitted exactly this during his deposition for the lawsuit between bond insurer MBIA and Bank of America (BofA), the megabank that purchased Countrywide in 2008. Mozilo is often blamed for the collapse of the U.S. housing market because of the toxic mortgages that Countrywide approved while Mozilo was at the helm. Rolling Stone reported it like this.
Mozilo presided over the sale of Countrywide to Bank of America (BofA), barely avoiding Countrywide’s catastrophic failure, and saddling Bank of America (BofA) with a portfolio of toxic mortgages. Mozilo, however, feels neither responsibility nor regret for his role in the economic collapse that caused so many homeowners to lose not just their homes, but also the lion’s share of their retirement income. During this same deposition Mozilo claimed, despite
In our centrally planned economy there were no negative consequences for the worst of the bad decisions and bad business practices. The big banks that screwed up were bailed out (courtesy of taxpayers), loaded up with newly created dollars (funded by the theft of wealth from everyone currently holding dollars) and sent out to make more loans.