If you aren’t familiar with the story on the CEO of Countrywide, it’s okay, but interesting stuff. In addition to all of the other excitement going on in our housing market, Mozilo was slapped with charges for insider trading and civil fraud. Did he do it? I wasn’t there so I have no idea, but I can tell you that he did settle along with two other executives to shell out $67.5 billion dollars to the SEC.
His fine is now the largest ever paid out by a public company in regards to a SEC settlement. The total of $67.5 million will be returned to those who were harmed by the actions. This sort of makes it sound like he is guilty and admitting to something. The insider trading issue has always been about what happens behind the doors in the executive suite. Countrywide was like most lenders in that it was struggling under the weight of bad mortgage investments, and in the heat of the moment many executives cracked. It’s a high pressure industry, from which none of us are exempt. People deserve for their financial planners, investors and mortgage brokers to be honest with them, and under financial pressure it is never easy for anyone.
The best way to conduct business is openly and honestly. Believe me, I have made plenty of mistakes in this life, and I am not here to criticize Mozilo. None of us are exempt from being human, but the difference is when we choose right or wrong, and if we choose to make a change. Then, and only then have we really done our job.
-Mayer Dallal
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment