i don't see the peanut farmer on there either...
Posted on 02/13/2009 1:30:53 PM PST by rightwingintelligentsia
Angelo Mozilo
The son of a butcher, Mozilo co-founded Countrywide in 1969 and built it into the largest mortgage lender in the U.S. Countrywide wasn't the first to offer exotic mortgages to borrowers with a questionable ability to repay them. In its all-out embrace of such sales, however, it did legitimize the notion that practically any adult could handle a big fat mortgage. In the wake of the housing bust, which toppled Countrywide and IndyMac Bank (another company Mozilo started), the executive's lavish pay package was criticized by many, including Congress. Mozilo left Countrywide last summer after its rescue-sale to Bank of America. A few months later, BofA said it would spend up to $8.7 billion to settle predatory lending charges against Countrywide filed by 11 state attorneys general.
(Excerpt) Read more at time.com ...
Funny...wish they would lose more and at faster pace.
The establishment and early growth of mortgage-backed securities (Ranieri was a pioneer in this business) wasn't a problem at all. In fact, the original CMOs (collateralized mortgage obligations) helped address a serious fundamental weakness in the banking industry by allowing banks with a lot of deposits and few new mortgages to underwrite to effectively lend money to banks with few deposits and a lot of demand for mortgages.
Time, of course.
Time, of course.
i don't see the peanut farmer on there either...
If the private sector was willing to ride on their own, why did Fannie and Freddie get involved? Are you saying that President Carter’s Community Reinvestment Act had nothing to do with loosening the qualifying criteria for lenders? Are you saying that Fannie’s CEO Reines, a former Clinton staffer had nothing to do with Fannie buying and guaranteeing and thereby encouraging the private sector to get more aggressive with subprimes? Who re-wrote Fannie and Freddie’s automated underwriting criteria to accept heretofor unacceptable qualifying debt ratios?
The private sector alone could not have done as much damage to the home buying loan business without exceptional encouragement from Fannie and Freddie who could not have done so much without the tacit approval the Congressional oversight committees - Barney Franks and Cris Dodds. The buck stops with Democrats.
Stupid is as stupid does!!
First The Enabler / Persuader
Barney Frank and other elected to government offices and their appointees. These people set up the rules and system that were and still are very coercive to bad these loans.
Second The executioners (those did the deeds)
While most bank were forced into doing some of these loans there were some who took advantage of the system for their own personal enrichment. Angelo Mozilo is a good example of the second group.
There should be many more on each list with each ranging from useful dupes to criminal conspirators.
agreed. Alan Greenspan and his fed policy are probably more responsible than anyone else.
but most of the people on this list are spot on. Some moreso than others.
Bump for Monday reading
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