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Savings Experiment: Snow RemovalAlmost everyone believes that Countrywide Financial (NYSE: CFC) CEO Angelo Mozilo is a thug. But, it turns out he is a smart one. Some fairly powerful people got special loans from his company. They were often people Mozilo needed as pals.
According to The Wall Street Journal (subscription required), "These borrowers, known internally as 'friends of Angelo' or FoA, include two former CEOs of Fannie Mae, the biggest buyer of Countrywide's mortgages."
Two of the people involved were James Johnson, who does some work for Barack Obama, and Franklin Raines, who had some scandal problems before he left Fannie Mae (NYSE: FNM).
Since Countrywide had business dealings with Fannie Mae, the whole deal looks a bit tawdry.
No one knows whether these loans will cause legal problems for any of the parties involved. But, it does, once again, raise the question of the wisdom of Bank of America (NYSE: BAC) buying a company with such an ugly past and so many chapters of less-than-ethical behavior.
Perhaps no one cares about the ethics part if there is money to be made.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
6-07-2008 @ 7:52PM
Erikaduh said...
Bank of America sucks and should go bankrupt by the end of 2009 I suspect.
6-08-2008 @ 6:53AM
Clay said...
Wow....."does some work for Barack Obama".......I guess that's his claim to fame...or your lazy attempt at taking a shot at Barack Obama.
"Johnson has long been one of Washington's most prominent leaders, holding leadership positions in business, the arts, and politics. From 1991 to 1998, he served as chairman and chief executive officer of the Federal National Mortgage Association (Fannie Mae), the quasi-public organization that guarantees mortgages for millions of American homeowners. Previously, he was vice chairman of Fannie Mae (1990-1991) and a managing director with Lehman Brothers (1985-1990).
As of 2006, he is a vice chairman of the private banking firm Perseus LLC, a position he has held since 2001. He is also a board member at Goldman Sachs, Gannett Company, Inc., a media holding group, KB Home, a home construction firm, Target Corporation, Temple-Inland, and UnitedHealth Group.
Johnson has also served as chairman of both the Kennedy Center for the Arts (1996-2004) and the Brookings Institution (1994-2003). He is also a member of the American Academy of Arts and Sciences, the American Friends of Bilderberg, the Council on Foreign Relations, and the Trilateral Commission."
Wikipedia....now that wasn't difficult at all.....James Johnson.....the guy who has "done some work for Barack Obama".
6-08-2008 @ 10:07AM
Dave said...
I notice you haven't taken a shot at former Senator Phil Gramm who is the primary economic advisor to McCain. Gramm is the architect of the deregulation legislation between investment and commercial banking precipitating the mortgage crisis. Or that Gramm was instrumental in blocking anti terrorism legislation mandating foriegn banks to cooperate and monitor money transfers. Additionally, Gramm's wife was hip deep in the mess with Enron. He became a lobbyist and foriegn agent representing banking interest's.
Rep. Chris Shays (R) stated that "corrupt people are no better that traitors". Gramm fits that definition to a 'T'. And McCain not only associates with him but intends to make him Treasury Secretary. McIntyre pull your head out.
6-08-2008 @ 11:08AM
Speculator said...
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