In 2006 and 2007, while that idiot Cramer of "Mad Money" fame was touting Countrywide Mortgage as a "buy" on CNBC, I was watching Angelo Mozilo. Mozilo was the founder of Countrywide Mortgage and he was selling hundreds of millions of dollars worth of company stock. I was tracking his insider sales on E Trade.
So about the time Cramer had Mozilo on his TV show, I very nearly threw a brick through the Samsung. I remember Cramer saying Mozilo had founded the company and was entitled to take a "little money off the table." To say that Cramer kissed Mozilo's ass is an understatement. He completely avoided any mention of the size of those sales. Mozilo was completely liquidating his ownership in the company.
I truly hope nobody bought Countrywide. Cramer should have been flogged in the square for his role in that interview. To this day, I refuse to watch his show.
I had a mortgage originator insider tell me what kind of loans Countrywide was making at that time. No documentation, no income statements, absolute fraud. I shorted Countrywide. Unfortunately, I covered far too soon. Should have spent my life savings on put options. Countrywide went bankrupt. Mozilo got a cushy job at Bank of America. B of A was forced to swallow Countrywide's toxic assets. Now Bank of America is truly a zombie bank. Mozilo didn't ruin one company, he has helped ruin two. Thankfully, we tax payers get to backstop the zombie mess as well. Trust me, if Bank of America had to actually "realize" their losses- the stock would hover around two bucks instead of 12.
Angelo Mozilo may be one of the great architects of this depression. I've read about all of his shady deals, his signature loans to friends and Senator Dodd's questionable purchase of a little Irish cottage. All of this garbage is on line- and I am desperately trying to avoid an aneurysm by looking it up again.
Today, the SEC announced a 67.5 million dollar fine levied on Mozilo like it was a great victory. I am not convinced that paltry amount even accounts for a quarter of his net worth. Not only that, but he won't get criminally charged.
I absolutely detest this fucking two tier criminal justice system in America that allows criminals like Mozilo to buy their way out of jail. The rest of us peons get sent to prison for a hell of a lot less. This is one of the reasons why people detest government. Mozilo, one of the chief architects of our depression, should be spending the rest of his life in prison and forfeiting ALL of the money he snuck away with while touting his company. I won't be happy until this piece of garbage is bunking with Bernie Madoff. Aneurysms available at the link: