Mortgage Search: Don't search for Angelo Mozilo
If you're looking for a mortgage these days, don't bother checking in with Angelo Mozilo. You remember him, right? He's the ex-CEO of Countrywide Financial. Countrywide was a fun place to visit in the good old days when your pulse would qualify you for a mortgage. And Angelo was the "genius" raking in record profits for himself - and for a while, for his shareholders.
It's always fun when you're making money, isn't it?
Well, that's the Wall Street way. When things are rockin' they're rakin' in the dough. When things stop rockin' it's a whole different ball game. Not only does the money stop, but the "victims" come out of the woodwork. And someone's got to pay. Looks like Angelo's going to be one of those someone's.
Not that he doesn't deserve it. But interesting how no one questioned him or anyone else while the money was rolling in, isn't it?
Ah well, now the lawyers will take over. After all, someone's got to make money. This has got to be a juicy opportunity for law firms to sue, let's say, people (like dear old Angelo) who sold sub-prime mortgages, claiming they misled customers who now can't afford the stepped-up monthly payments and, as a result, are losing their homes.
Then there are all those companies (like Countrywide) whose stock price collapses. Didn't the the company mislead investors through falsifying the company's financial reporting?
The possiblities are endless.
Of course, the lawyers aren't all squeeky clean either. Last year, as the extent of the subprime debacle/scandal came into the light of day, the justice department started prosecuting firms like Milberg LLP and lawyer Richard "Dickie" Scruggs alleging that they offer plaintiffs kickbacks is they sign on to the lawsuit. These lawyers stand to gain millions, tens of millions, sometimes hundreds of millions of dollars with successful prosecutions. They take up to one third of the total settlement that juries grant to plaintiffs. And some settlements in these class action cases are in the hundreds of millions.
So who's the good guy here, the government? Let's not go there. It's times like these that you start to understand how money corrupts people.
Meanwhile, there are still people doing their mortgage search. Life goes on.
It's always fun when you're making money, isn't it?
Well, that's the Wall Street way. When things are rockin' they're rakin' in the dough. When things stop rockin' it's a whole different ball game. Not only does the money stop, but the "victims" come out of the woodwork. And someone's got to pay. Looks like Angelo's going to be one of those someone's.
Not that he doesn't deserve it. But interesting how no one questioned him or anyone else while the money was rolling in, isn't it?
Ah well, now the lawyers will take over. After all, someone's got to make money. This has got to be a juicy opportunity for law firms to sue, let's say, people (like dear old Angelo) who sold sub-prime mortgages, claiming they misled customers who now can't afford the stepped-up monthly payments and, as a result, are losing their homes.
Then there are all those companies (like Countrywide) whose stock price collapses. Didn't the the company mislead investors through falsifying the company's financial reporting?
The possiblities are endless.
Of course, the lawyers aren't all squeeky clean either. Last year, as the extent of the subprime debacle/scandal came into the light of day, the justice department started prosecuting firms like Milberg LLP and lawyer Richard "Dickie" Scruggs alleging that they offer plaintiffs kickbacks is they sign on to the lawsuit. These lawyers stand to gain millions, tens of millions, sometimes hundreds of millions of dollars with successful prosecutions. They take up to one third of the total settlement that juries grant to plaintiffs. And some settlements in these class action cases are in the hundreds of millions.
So who's the good guy here, the government? Let's not go there. It's times like these that you start to understand how money corrupts people.
Meanwhile, there are still people doing their mortgage search. Life goes on.
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