the surface again upon reading Matt Taibbi’s Rolling Stone
story on Big Bank Whistleblowers.
I actually was singing “Meet the new boss, same as the old boss.” just before
I got to that exact quote from The Who in the article.
The political class has us distracted by social and other issues, and just keeps taking care of its own.
NINJA loans, stood for, No Income, No Job, No Assets.
An 125% loan to value. And interest only balloons, lending the down payment with a 20% loan on top of the 80% first mortgage loan, and so on.
And Angelo Mozilo had Countrywide leading the way.
I have railed on him many times in the past, and will do so again.
He should be working on his second decade in prison, but, is enjoying his tens of millions of ill-gotten gains, while hundreds of thousands of his customers suffer foreclosure and bankruptcy.
Some highlights from the Rolling Stone story:
He was told that “FUND ‘EM” was “[CEO] Angelo Mozilo’s growth strategy” and that the company had “a loan for every customer.”
. . . . .
“What if the person doesn’t have a job?
“Fund ’em,” the guy said.
And I said, “What if he has no income?”
“What if he has no assets?”
And he said, “Fund ’em.”
. . . .
As it turned out, Countrywide execs knew exactly what they were doing, and Winston quickly went the way of most whistleblowers, losing his job when Bank of America acquired the firm in 2008.
. . . .
But four years later, we’re still waiting for the first criminal conviction against any individual for crisis-era corruption. And while politicians like Ohio’s Sherrod Brown have spent upwards of half a decade now fighting to bring the “Too Big to Jail” issue to a vote, there’s been no significant reform there, either.
. . .
Last summer, Bank of America — now responsible for all of Countrywide’s liability — was allowed to buy its way out of years of fraud and other abuses with a “historic” $17 billion settlement.
Read more: http://www.rollingstone.com/politics/news/a-whistleblowers-horror-story-20150218#ixzz3Z665pbrJ
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I mean, gag me with a spoon.
I saw the individuals and families dragged down by this crisis, most of whom have not fully recovered from bankruptcy and foreclosure, and will not even buy homes again.
This is a family friendly blog, so I cannot post what I wish for Angelo.