Sub-prime supremo to be given $40 million to go away and “have some fun”
King of sub-prime crash gets a $40M golden
parachute.
Angelo Mozilo, who has been vilified for his role in the sub-prime credit
crisis, agreed on a deal to sell Countrywide to Bank of America for $4 billion
in stock. The buyout amounts to a rescue for the business, which has been
flirting with bankruptcy despite a portfolio of 9 million loans worth a total of
$1.5tn.
As America’s largest mortgage provider, Countrywide has shouldered sizeable blame for the industry’s aggressive promotion of loans to low-income households. The company is under investigation in Illinois for misleading customers about their repayment commitments.
Mozilo, a butcher’s son from New York who co-founded Countrywide in 1969, was paid $142m in 2006 and has sold more than $400m in shares in recent years. Bank of America said he was unlikely to stay after the takeover, but he will get a severance package estimated by compensation experts at $36m and his stake is valued in the buyout at $3.5m.
“I would want him to stay until the deal gets done and then probably I would guess that he would want to go have some fun,” said Bank of America’s chief executive, Ken Lewis.
Mozilo epitomizes the fraudsters who used unlicensed, unregulated mortgage operations around the U.S. to create the sub-prime hustle. Still, it looks like “respectable” bankers ain’t going to make it tough on one of their bubbas.
As America’s largest mortgage provider, Countrywide has shouldered sizeable blame for the industry’s aggressive promotion of loans to low-income households. The company is under investigation in Illinois for misleading customers about their repayment commitments.
Mozilo, a butcher’s son from New York who co-founded Countrywide in 1969, was paid $142m in 2006 and has sold more than $400m in shares in recent years. Bank of America said he was unlikely to stay after the takeover, but he will get a severance package estimated by compensation experts at $36m and his stake is valued in the buyout at $3.5m.
“I would want him to stay until the deal gets done and then probably I would guess that he would want to go have some fun,” said Bank of America’s chief executive, Ken Lewis.
Mozilo epitomizes the fraudsters who used unlicensed, unregulated mortgage operations around the U.S. to create the sub-prime hustle. Still, it looks like “respectable” bankers ain’t going to make it tough on one of their bubbas.
Posted: Sat - January 12, 2008 at 05:28 AM