Countrywide’s Mozilo Charged with Fraud

Mark Ellis — Sun, 07 Jun 2009 19:53:07 +0000

Oh, how the mighty have fallen: the man credited with building Countrywide Financial, the biggest name in mortgage lending, from the ground up has now been charged with insider trading and securities fraud. Angelo Mozilo, a 70-year-old son of Italian immigrants of little means, faces significant punishment if he is found guilty.

Mozilo – or “Tangelo” if you prefer, a nickname given to him because of an outrageous tan – may be the next casualty of the economic crisis. Countrywide Financial, which went from originating hundreds of billions of dollars worth of loans to borrowing $11.5 billion just to stay afloat, was purchased by Bank of America last July.

At the height of its success, Countrywide Financial originated $41 billion in subprime mortgages, a fact that contributed to the housing market crisis we face today. Charges against Mozilo represent the determined attempts of the government to enforce stricter regulations in order to enhance the economy’s recovery.

Image: Flickr

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Countrywide’s Mozilo Charged with Fraud