You are watching the beginning of the perfect storm and the storm is going to affect every major player in the mortgage industry, whether they like it or not.
It all starts with the CEO’s and company exec’s heads being placed on the chopping block as investigations start to roll out and DA’s start to taste blood.
CTW Investment Group sent a letter to the nation’s largest lender demanding the resignation of Harley Snyder, Countrywide’s lead director and chairman of its compensation committee. And the American Federation of State, County and Municipal Employees has also called for the resignation of Snyder and two other directors that make up its compensation committee, Oscar Robertson and Robert Donato.
The Securities and Exchange Commission (SEC) is investigating into CEO and co-founder Angelo Mozilo’s sales of Countrywide stock that he has been dumping has fast as he can. Mozilo has cashed in on more than $100 million in stock sales this year.
All the while, Countrywide’s stock has dwindled down 50% this year.
Snyder, Robertson and Donato have sold over $15 million of Countrywide stock in the last two years.
“Our analysis of directors’ sales of stock and stock options raises serious doubts about the autonomy of these directors and their ability to act in shareholders’ best interest,” AFSCME said in a letter sent today to Countrywide. “Our examination indicates that so-called independent directors at Countrywide have been exercising stock options and then selling shares at an alarming rate.”
You can read the rest of the story at http://www.thestreet.com/_htmlatb/newsanalysis/banking/10389147.html
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Moe
What will happen if Countrywide files for bankruptcy?
Hopefully, they’ll go away. Sic.
Chapter II:Utter catastrophe, starring a bunch of mad mother f**kers.
You need to ask what in the hell are all those newly unemployed people are going to do.