'Perversity' in Calabasas: More $$$ for Countrywide bigs

News item from the L.A. Times: "The top two executives of beleaguered Countrywide Financial Corp. will pocket $19 million in stock next week, according to a regulatory filing. It's the start of a series of multimillion-dollar payments expected to go to the pair before and after the company's pending takeover by Bank of America Corp."

More: "The largesse for Countrywide Chief Executive Angelo Mozilo and President David Sambol drew immediate fire from Sen. Charles E. Schumer (D-N.Y.), a member of the Senate Finance Committee, whose members have been debating the merits of a government bailout of consumers and mortgage lenders caught in the sub-prime meltdown.

"It's perverse [emphasis added] for Bank of America to reward the principal architects of the bad business practices that caused this housing crisis," Schumer said in a statement. "Bank of America will hopefully correct the bad practices Countrywide put in place. But enriching people who specialized in deceiving borrowers for the sake of their bottom line will not help that cause."

Also: "Bank of America Corp. will pay $28 million to Countrywide Financial Corp. to chief operating officer David Sambol to retain him as head of the merging companies' consumer mortgage operations."

The headline is a cheap shot, I'll admit -- anytime you're quoting Chuck Schumer in a headline, it's a low blow. But in all seriousness: Do you mean to tell me David Sambol is uniquely qualified to lead Countrywide after Bank of America buys it? I mean, I'm sure he's good at his job. So was Karl Dorrell, but UCLA found another football coach. So was Grady Little, but the Dodgers found another manager.

This is the Countrywide management team that says no one predicted the mortgage crisis; these are the guys who said last summer that Countrywide would benefit from the mortgage meltdown. Then they went out and lost $1.2 billion in the third quarter, lost $442 million in the fourth and sold the company for a fraction of its previous value. And this is the very best management team Bank of America can find?

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com

Comments

[Enlightenment]

http://www.nationalbubble.com/stopthebailout/

[dave]

Why do banks continue to be rewarded for their bad behavior practices? How about some accountability? Was it really that difficult for a bank to simply verify the income statements of those they loaned hundreds of thousands of dollars to? Deadbeat borrowers and wreckless banks are the reason we have a housing mess.

It's time we get back to - who ever makes the loan, holds the risk. Then, banks might actually scrutinize an applicant and think twice before giving a deadbeat money. If a bank chooses not to do that, it should be their own fault if they fail.

[Uncle Billy]

Ah wouldn't you just love to be a fly on the wall at meetings between Sambol and BofA.

I was wondering what Kathleen Brown was up to -- she was on the CW board and jumped ship with Henry Cisneros just before the storm hit. Scan of the news shows she was just elected secretary of "California Climate Action Registry." The Press Release on the home page of their site talks about her brother Jerry's appeal to lawmakers to regulate the carbon offset industry. Could be coincidence, but maybe this family tends to work together? I've heard that the "greening of america" is going to be the next bubble. I'm not up on enivornmental issues, but it sure looks like big money is beginning to change hands with all the "greening," and carbon offsets.

[Sara]

I can't believe what I am reading. What happened to the bank (B of A and Countrywide) being financially responsible? I am angered, disgusted and full of ire that such decisions are being made.
Is it too late for me to get a job where I can run a business into the ground, appeal to a competitor for a financial lifeline and still get my golden parachute? Where do I apply for such a position?

[lefty]

guys you know sometimes our 'leaders' can be a little dopey; one time conrad hilton was a senator and he wanted to prohibit crime scenes in movies! lol well anyway, your home is waiting for you: right here in incomparable metro L.A.!! do not settle for anything less! except maybe san diego :) have fun shopping!

[tealeaf]

Oh I love lefty. It's the sheer "aw shucks - they ain't making any more land in metro LA" that will keep the Eternal Sunshine of his Spotless Mind forever glowing.

[Andrew]

To first poster 'gary' (March 29th): Your asking fee to run any corporation into the ground for a flat $2,000,000.00 is patently absurd. I could do it for half that...!!!

[consumeradvocate101]

Fool me once shame on you. Fool me twice shame on me. When will we learn.

[P J Evans]

Gee, and the government's proposed new rules for the Treasury would result in ... more bailouts and more protection of businesses. The rest of us will, as usual, get to foot the bills and absorb the losses. (In fact, it's another scam, intended to help those who have lots, have lots more.)
And it won't do diddly for people with mortgages about to foreclose or their 401Ks and IRAs about to disappear.

[greg]

Does anyone else think this engineered ponzi scheme is much worse than Enron! Wheres the subpoenas!!! come on people wake up.

[Adealia Artist]

They should be in prison and their families stripped of all assets. Instead these people who hurt America are being rewarded. Would you like to know why?

Wealth is no longer dependent on any given country. The Wealthy could care less about the United States as long as the money flows in and they can afford a place in Dubai.

Who are the international wealthy? They are investors, rock stars, movie starts, producers, artists with one thing in common, their wealth and no loyalty to anyone but their kind.

[GodSend]

Is the Fed playing a game of Monopoly with the Banks?