March 4th, 2009
04:02 PM ET

Ex-leaders of Countrywide profit from bad loans

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/POLITICS/03/04/homeowner.bailout.guidelines/art.house.sign.gi.jpg]Eric Lipton
New York Times

Fairly or not, Countrywide Financial and its top executives would be on most lists of those who share blame for the nation’s economic crisis. After all, the banking behemoth made risky loans to tens of thousands of Americans, helping set off a chain of events that has the economy staggering.

So it may come as a surprise that a dozen former top Countrywide executives now stand to make millions from the home mortgage mess.


Filed under: 360° Radar • Economy
soundoff (10 Responses)
  1. steve o, Barstow,Ca

    So this fellow failed to have any ethical enlightenment and is profiteering as grandmothers across the country are being harrassed into giving up the family home. An outstanding job for him and his ilk is to go on a life time monopoly playing spree at the local graybar inn.
    He can dine on slop, and use a stainless steel toilet as not to be so soiled and stained as his true nature.

    March 4, 2009 at 10:10 pm |
  2. john in california

    why is it that no one , will jail Bernie Madoff? why cant the governor of new york put him in jail? He repeatedly ignores subpoenaes and refuses to adhere to the law!. He works from his millionaire apartment from his laptop and cell phone and still funnels monies to various accounts..... what if it was your money?

    March 4, 2009 at 9:29 pm |
  3. Annie Kate

    I'm not surprised that some people have found a way to profit off the economic misery of others. Its the American way I suppose – at least the American way of business. I'm glad though that some people are getting helped by this though with lower interest rates, etc. I just wish that they would work with more of the people who they are foreclosing on and see if they can work something out with them. It may end up that more people are helped by PennyMac than by our government bailout plans. Wouldn't that be ironic?

    March 4, 2009 at 8:46 pm |
  4. Mike, Zephyrhills, FL

    Mary Doe,

    Call centers for the last 10 yrs have been going to India. At&T, Dell Computer, HSBC , Cingular wireless, most phone and cell companies, also did you know medical records are being transscribed in India and then emailed back here too.

    So making our medical records digital may not be done by americans either!!

    March 4, 2009 at 7:47 pm |
  5. KatchProFILMS

    I would like his "tie" has a movie prop. (Really.) Thanks.

    March 4, 2009 at 6:19 pm |
  6. KatchProFILMS


    March 4, 2009 at 6:16 pm |
  7. JC- Los Angeles

    All anyone had to do to prevent the collapse of our once proud nation was spend one day here in California at a mortgage lender like Countrywide or at the office of a mortgage broker.

    With each egregious Greenspan rate cut, the fraud factories at Countrywide, Bank of America, Wells Fargo and WAMU cranked up fraud production to staggering levels.

    They first stuck Wall Street's secondary markets with all their Jumbo loan fraud and then when Wall Street realized their mistake, Countrywide and their ilk then stuck Fannie Mae & Freddie Mac with Conforming loan fraud.

    They were simply fraud factories making a killing off of an octogenarian's incompetence.

    March 4, 2009 at 5:49 pm |
  8. Mary Doe

    Bank of America is laying off US based staff and replacing them with off short (India) or near shore (Guadalajara, Jalisco Mexico) staff. In short I'm competing to keep my job with someone that is getting paid less. I do feel very fortunate to have my job during these times, however it's no fun waiting to be replaced at some point myself. Wouldn't it be a little more respectful of the bank to offer them to keep there job, but with a pay cut? Outsourcing is directly contributing to this deep recession.

    March 4, 2009 at 5:39 pm |
  9. earle,florida

    Wow,absolutely fantastic read,...Bravo Mr.Lipton

    March 4, 2009 at 5:37 pm |
  10. Mike, Zephyrhills, FL

    Why should this be a surprise to anyone??

    The S&L Scandal had many people just like this buying property for 10 cents ont he dollar after the government paid 500% for it. Then the money made after re-selling for sometimes 2000% profits, was sent to offshore accounts and not one dime of income tax or capital gains tax was paid.

    Its not tha fact they do this, they do it tax free and off the backs of people who do pay their bills and taxes.

    Crooks and should be thrown in jail and made to pay back every dime and plus interest.

    March 4, 2009 at 4:34 pm |