Countrywide

One of the main characters in the mortgage financial scandal was a man by the name of Angelo Mozilo. He was a guy who started a small mortgage company in the 60’s and by capitalizing on mortgage schemes he parleyed his small operation called CounrtyWide into the largest mortgage company in the country. By selling bad mortgages to Wall Street bankers he made millions and then when the end of the good times arrived he sold his own stock in CountryWide for $140 million. He sold while telling his investors that everything was fine when he knew the company was going down the drain.

At the end of 2008, Countrywide was acquired by Bank of America in a deal worth some $2.5 billion. Bank of America had already pumped $2 billion into the mortgage lender before the deal was completed, and the acquisition was seen as a way to protect that investment.

Although Mozilo's company is now part of Bank of America, he is still profiting. As part of the acquisition, Bank of America agreed to retain Mozilo as a consultant. Mozilo is obligated to make himself available for a specified period of time each month through December 2011 and at the rate of $400,000 per year.

He is also entitled to receive other benefits, including office space, secretarial support, use of the company's aircraft, financial consulting services and payment of annual country club dues.

For three years, he gets continuing health, life insurance and financial planning benefits for himself and his beneficiaries. After those three years, he and his spouse will continue to get health benefits for their lifetimes.



And so ends another great story of rags to riches. What a country!