Failed loans net CEO's big windfall

#1
volfan2024

volfan2024

I was there! Majors beat Bear! Utfantilidie
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#1
I noticed the other day where the South Florida (i.e.) housing market was in a tail spin.Houses 3 million dollar homes are being sold at 30% less original market price. Investors coming in internationally are spending their euro dollars buying these homes. Real estate companies are abvertising abroad more than ever. No less than 3 CEO's were on Capitol Hill the other day explaining why they were awarded 140 mil,40 mil, and 10 mil in bonus incentives on companies losing billions. I'm was no marketing major but I smell a rat. Send them to jail, not Barry Bonds and Roger Clemens, they're not scum.
 
#2
#2
utfantilidie said:
I noticed the other day where the South Florida (i.e.) housing market was in a tail spin.Houses 3 million dollar homes are being sold at 30% less original market price. Investors coming in internationally are spending their euro dollars buying these homes. Real estate companies are abvertising abroad more than ever. No less than 3 CEO's were on Capitol Hill the other day explaining why they were awarded 140 mil,40 mil, and 10 mil in bonus incentives on companies losing billions. I'm was no marketing major but I smell a rat. Send them to jail, not Barry Bonds and Roger Clemens, they're not scum.
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You might want to direct the anger at the respective Board's of Directors and even the stock holders for approving these severance packages. Nothing illegal or even unusual here.

The only one of these that even remotely smells of illegal activity is the Countrywide case because the guy sold some of his stock.

To me the crime is the Congressional show trial. There's a thread about it in the political forum.
 
#3
#3
utfantilidie said:
I noticed the other day where the South Florida (i.e.) housing market was in a tail spin.Houses 3 million dollar homes are being sold at 30% less original market price. Investors coming in internationally are spending their euro dollars buying these homes. Real estate companies are abvertising abroad more than ever. No less than 3 CEO's were on Capitol Hill the other day explaining why they were awarded 140 mil,40 mil, and 10 mil in bonus incentives on companies losing billions. I'm was no marketing major but I smell a rat. Send them to jail, not Barry Bonds and Roger Clemens, they're not scum.
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They built their careers to the point in which they had the upper hand in negotiations...Not criminal in any manner!
 
#4
#4
mozillo should be in jail. the guy had to know that they were inflating earnings with bad loans. and then he sells his stock like crazy and continues to sell as it goes down only to go on cnbc constantly and tell the world that countrywide is in great shape.
 
#5
#5
droski said:
mozillo should be in jail. the guy had to know that they were inflating earnings with bad loans. and then he sells his stock like crazy and continues to sell as it goes down only to go on cnbc constantly and tell the world that countrywide is in great shape.
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Maybe he was just smart enough to understand that pressure from the government to make it easier to borrow would eventually lead to a collapse...?
 
#8
#8
therealUT said:
He may have, he may not have. However, not trying your best at your occupation is not a criminal offense.
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yes but selling on inside information and lying on national television and propping up a stock that you are selling most definitely is a criminal offense. the first is insider trading the latter is market manipulation. both are felonies.

he also has a fiduciary duty to the shareholders.
 
#9
#9
droski said:
yes but selling on inside information and lying on national television and propping up a stock that you are selling most definitely is a criminal offense. the first is insider trading the latter is market manipulation. both are felonies.

he also has a fiduciary duty to the shareholders.
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And, speculation is at the opposite end of the spectrum from proof.
 
#12
#12
droski said:
Countrywide under FBI investigation - Mar. 8, 2008
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So, you respond by throwing out more "mere speculation." As of right now, there is absolutely no proof that Mozilo has done anything criminal. If anything, he has simply exploited a loophole in the SEC Regs.

Also, on a side note, if over 60% of your compensation was based on stock options, and you could see that your ship was going to crash regardless of what evasive action you took, would you not try to get the highest value for your stocks?

This is not the Enron situation where Ken Lay came out and passionately urged his employees to invest in Enron, simply to inflate the price of the stock so that he could sell at a premium prior to the corporation going into the crapper.
 
#13
#13
it's very similar to enron and lay. he goes on national television says things he must know are not true and is selling his stock on the same day. how is that different than lay who came out and said everything was fine? lay tried the same argument i.e. i'm too stupid to know my company is going under. he's in jail now.
 
#14
#14
droski said:
it's very similar to enron and lay. he goes on national television says things he must know are not true and is selling his stock on the same day. how is that different than lay who came out and said everything was fine? lay tried the same argument i.e. i'm too stupid to know my company is going under. he's in jail now.
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Lay is dead.

Also, Lay and Skillings' crime was not in the lies they told their employees (however, that was highly unethical and not even on the same level as Mozilo), it was establishing shadow company's and accounts to cook the books.
 
#15
#15
therealUT said:
Lay is dead.

Also, Lay and Skillings' crime was not in the lies they told their employees (however, that was highly unethical and not even on the same level as Mozilo), it was establishing shadow company's and accounts to cook the books.
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Lay did get convicted for false statements. that speach was shown at the trial many times. and i'd say that mozilo going on tv 40+ times and lying is far worse than what lay did (from the sec's point of view). one is a single statement in a private setting, the other are repeated statements on the most important financial news source in the world.
 
#16
#16
droski said:
Lay did get convicted for false statements. that speach was shown at the trial many times. and i'd say that mozilo going on tv 40+ times and lying is far worse than what lay did (from the sec's point of view). one is a single statement in a private setting, the other are repeated statements on the most important financial news source in the world.
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Yes, he did, that charge was piggy backing on numerous counts of bank fraud. Very much like getting a seat belt citation tagged on to a DUI...
 
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