Posts Tagged ‘subprime mortgages’


Special mention

112_226428  20_21


Special mention



Special mention

178063_600 1fa323e01db7eb05b1c17299a830efd7


Special mention

CBqk9LDUgAAVr7h jm040315_COLOR_GOP_Business_Religious_Freedom


The Center for Public Integrity has put together a three-part series on what has happened to the principals after the great meltdown of Lehman Brothers in September 2008.

  • The executives of the Wall Street banks: Richard Fuld (Lehman Brothers), Jimmy Cayne (Bear Stearns), Stanley O’Neal (Merrill Lynch), Chuck Prince (Citigroup), and Ken Lewis (Bank of America)—all “living in quiet luxury.”
  • The subprime lenders: “top executives from the 25 biggest pre-crisis subprime lenders—including at least 14 founders or CEOs— re back in the mortgage business at mortgage companies that are less regulated than banks.”
  • Their banks: “the major banks that survived the crisis, largely because they were saved with taxpayer money after being deemed ‘too big to fail,’ are now bigger and more powerful than ever.”
  • The government regulators: “most of the leaders of the agencies charged with oversight of the financial system—the SEC, Federal Reserve, Treasury, FDIC, and OTS—have moved on” while “many former regulators are cashing in on their experience—helping companies navigate reforms made after the crisis, writing books on their experiences, making a killing on the speaking circuit—or have retired quietly.”

Note: Cosmopolis accomplishes, in film, for the post-2008 meltdown what The Cook, The Thief, His Wife, and Her Lover did for Thatcherism.


Special mention

mike3feb 126539_600


The series continues with the Nine of Hearts: Angelo Mozilo.

Angelo R. Mozilo was chairman of the board and C.E.O of CountryWide Finance until July 2008. Countrywide was not so interested in sub-prime loans in the beginning when the sub-prime loan industry took off. Mozilo described the people involved with those loans at the time as “crooks”. But facing significant loss of business, Country Wide moved quickly into the sub prime business.

Mozilo used his fiscal power to give favorable mortgage financing to key political figures and power brokers. This included loans to Senate Banking Chairman Christopher Dodd, Senate Budget Committee Chairman Kent Conrad and former Fannie Mae CEO Jim Johnson. Other people received favorable mortgages to buy political favors. This included Nancy Pelosi’s son, Paul, Barbara Boxer, Richard Holbrooke, Donna Shalala and others wielding influence and power.

Mozilo sold hundreds of millions of dollars worth of mortgages over the years personally. The SEC charged him in 2009 with insider trading and securities fraud. He reached a settlement with SEC in 2010. He paid $67.5 million of a fortune estimated as over $600 million.