Angelo Mozilo, June 26, 2008: “Bank of America will reap the benefits of what we have sowed.”
August 31, 2011:
Bank of America paid $2.5 billion to buy Countrywide, but writedowns and legal costs have pushed the estimated cost of that purchase to more than $30 billion.
Nevada, U.S. regulator challenge BofA on [Reuters]
Earlier: Angelo Mozilo More Or Less Suggests Bank Of America Stock Up On Lube
Countrywide is both an albatross and a boon for Brian Moynihan. Sure, it's the reason for all of Bank of America's troubles, but it's also really convenient to have such a reason.
In June 2008, Countrywide founder and CEO Angelo Mozilo stood before a group of CFC shareholders and, through salty tears, told them that Bank of America would "reap the benefits of what we have sowed." He wasn't kidding, and in the 4+ years since Ken Lewis paid $4 billion for the place, BofA has had the pleasure of ponying up an additional $40 billion (and counting) in write-downs and legal fees associated with cleaning up Countrywide's messes, while CEO Brian Moynihan has publicly described the acquisition as an albatross around his neck. Additionally, Ang Moz forked over $67.5 million in 2010 to "resolve SEC claims that he misled investors," and separately, there has been talk by some that Countrywide contributed in no small way to the worst financial crisis since the Great Depression. In light of all that, does Ang Moz, have any regrets about the way his company was run? Not a fucking one and if he had to do it all over? He wouldn't change a thing.
Free at last, free at last! Thank political inertia almighty, Angelo Mozilo is free at last!
