These CEO’s made a killing to the tune of tens of millions of dollars. They are living lavish lifestyles of the rich and famous that was bought on the backs of mostly lower and middle class American homeowners.
While millions of these homeowners/people suffer, the 3 CEO’s are living large without a care in the world. They do not have to worry about their mortgage or losing their home. Unlike the millions of struggling Americans of our nation that they got rich off of.
Three CEOs who made millions of dollars off the housing market — even as homeowners and their companies started to suffer — are expected to testify before Congress Friday about why they deserved such large compensation packages.
Countrywide Financial Corp. chairman and chief executive officer Angelo Mozilo, former Merrill Lynch CEO E. Stanley O’Neal and Charles Prince, former chairman and CEO of Citigroup, have all been asked to tell Congress whether they believe their pay was justified.
So, the big question of the day is “was their pay justified?”
Well, it was justified if you consider selling what was essentially “snake oil” to the American people, to the tunes of billions of dollars. It is justified if you think swindling millions of hard working Americans out of their money and damaging them credit wise, emotionally and sometimes physically. Then yes, it is justified.
Let’s take a look at Angelo Mozilo’s Pay Compensation:
- Will make millions if Bank of America’s proposed $4 billion acquisition of his company goes through.
- $44 million in various retirement benefits and deferred compensation
- Sold more than $127 million in stock options early on in 2007. Those sales came before he announced a $388 million write-down on profits and Countrywide’s growing problems became apparent. As the company’s troubles continued, Mozilo kept selling shares, cashing out an additional $30 million in options.
Mozilo has made close to $200 million dollars in the last 2 years, as the mortgage and housing crisis had spiralled out of control and as the nations #1 lender, Countrywide played a huge role in this crisis that is now suffocating our nation.
As the mortgage market has collapsed, Countrywide has foreclosed on 90,000 loans, has laid off more than 11,400 people and has reported a loss of $704 million in 2007, its first annual loss in more than 30 years.
“According to recent press reports, if Bank of America completes its proposed purchase of Countrywide Financial, you stand to collect tens of millions of dollars in severance payments and other compensation,” Rep. Henry Waxman, D-Calif., chairman of the House Committee on Oversight and Government Reform, wrote to Mozilo when asking him to testify.
Who will testify at Friday’s hearing:
- Angelo Mozilo - CEO of Countrywide Financial
- Stanley O’Neal - Ex-CEO of Merrill Lynch
- Charles Prince - Ex-CEO of Citigroup
- Various board members who approved these compensation packages
- Secretary of the Commonwealth William F. Galvin, Massachusetts’ top securities regulator
Galvin has used his office to investigate the role that some of the nation’s largest investment banks had in selling subprime mortgages to investors and how much information about the risk was disclosed.
“The nature of the financial instruments is artificial. They were contrived. They don’t make a lot of sense,” Galvin said. “The risk that they engendered was far more excessive than was explained in many instances to the investors, whether they be municipalities or individuals.”
I couldn’t have said it better myself Mr. Galvin. But let’s not sugar coat things. What you call artificial, I call “snake oil” and nothing short of a world wide “ponzi scheme” that went terribly wrong. http://loanworkout.org/2008/03/06/mortgage-titans-tyrants-will-have-to-answer-to-congress-friday/