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Old 05-21-2008, 09:01 AM   #12 (permalink)
ProfessorShays
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Re: Mozilo on distressed borrower's appeal for help: "disgusting"

It would be a bad thing if Mozilo is able to inhibit the efforts of CW to provide flexible workout solutions, but he obviously doesn't care and that characteristic should serve as a basis for his removal. I find interesting a quote from a LA Times article that is identified below. We can hope that as the Countrywide story continues, Mozilo will suffer for the consequences of his actions.

Daniel

"U.S. District Judge Mariana Pfaelzer in Los Angeles this week denied a request by Countrywide to dismiss the claims, filed last year by a group of public pension funds, ruling that the shareholders had provided evidence showing 'a rampant disregard' for the risk that borrowers would default."

"'Plaintiffs' numerous confidential witnesses support a strong inference of a companywide culture that, at every level, emphasized increased loan origination volume in derogation of underwriting standards,' Pfaelzer wrote in the ruling."
(see Countrywide executives, directors must defend shareholder suit - Los Angeles Times )
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