An Unfinished Chapter
at Countrywide
Reports indicate that the U.S. Department of Justice could file a civil lawsuit against Countrywide Financial co-founder and former CEO Angelo Mozilo, who has largely avoided accountability for his role in the mortgage crisis. It remains to be seen whether the department actually will file the lawsuit, as it dropped a criminal case against Mozilo in 2011 following a two-year investigation. The lawsuit would come seven years after the company reported that it was drawing down its entire $11.5 billion revolving credit line, which marked the beginning of the end for the subprime mortgage lender, which was acquired by Bank of America in 2008. If the department does file a civil suit, it remains uncertain whether it would also pursue former Countrywide directors, who should have known about the company's abuses and were paid between $345,000 to $539,000 in 2007 -- a year that was not an anomaly -- for their service.
From "An Unfinished Chapter at Countrywide"
New York Times (08/24/14) P. BU1 Morgenson, Gretchen
Reports indicate that the U.S. Department of Justice could file a civil lawsuit against Countrywide Financial co-founder and former CEO Angelo Mozilo, who has largely avoided accountability for his role in the mortgage crisis. It remains to be seen whether the department actually will file the lawsuit, as it dropped a criminal case against Mozilo in 2011 following a two-year investigation. The lawsuit would come seven years after the company reported that it was drawing down its entire $11.5 billion revolving credit line, which marked the beginning of the end for the subprime mortgage lender, which was acquired by Bank of America in 2008. If the department does file a civil suit, it remains uncertain whether it would also pursue former Countrywide directors, who should have known about the company's abuses and were paid between $345,000 to $539,000 in 2007 -- a year that was not an anomaly -- for their service.
From "An Unfinished Chapter at Countrywide"
New York Times (08/24/14) P. BU1 Morgenson, Gretchen
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