The Danger Must Be Growing
Mozilow shows no sign of slowing
In his robbing and his gloating…
This absolutely frightening picture accompanies the LA Times article, “House committee questions high compensation for CEOs involved in mortgage crisis” (AP – March07, 2008). If you don’t think it’s right to walk away from your mortgage, this might piss you off enough to change your mind:
"It seems that CEOs hit the lottery when their companies collapse," House Oversight and Government Reform Committee Chairman Henry Waxman, D-Calif., said at the opening of the hearing. "Any reasonable relation between their compensation and the interests of their shareholders appears to have broken down."
Appearing before the panel were Angelo Mozilo of Countrywide Financial Corp., the nation's largest mortgage lender; Stanley O'Neal, formerly of Merrill Lynch & Co.; and Charles Prince, formerly of Citigroup Inc. All three companies have been major losers in the mortgage crisis.
Waxman noted that Mozilo received more than $120 million in compensation and sales of Countrywide stock last year while that company recorded losses of $1.6 billion. Merrill Lynch lost $10 billion in 2007, but O'Neal got a $161 million retirement package.
Republicans on the committee questioned the need for the hearing……
This takes us back to why these things (exploding bubbles destroying companies) happen. Shouldn’t company insiders know that a company is taking way too many stupid risks? This is what they do for a living after all. The answer is OF COURSE THEY KNOW. They know that when the company blows up, investors will lose a fortune. They also know that since the company is making tons of money off of the super risky gambles they’re taking, they will get paid a fortune until all hell breaks loose. So they don’t care. This is called The Agency Problem (which states that the interests of management might not be the same as those of the investors). And when all hell breaks loose, their punishment is to have a mountain of money dropped on them. Poor bastards.
There is no corporate governance or oversight in the
For the one or two who do care, scream at you congressmen via email or other means. Tell these weasels what you think. The only thing they care about is their jobs, and if they think somebody is watching, they might ape doing the right thing for long enough to accidentaly improve something.
Write your Representative:
Write your Senator:http://senate.gov/general/contact_information/senators_cfm.cfm
Tell them what you think of them. Be colorful. Send me your letters and I'll post as many as I can.