Government to sue former Countrywide head

by Ryan Smith21 Aug 2014
After years of grumbling that the government has held few individuals accountable for the financial meltdown, it looks like Uncle Sam is taking a shot at one of the collapse’s chief architects.

A government task force plans to bring a civil suit against Angelo Mozilo, co-founder of Countrywide Financial Corp., according to a Bloomberg report. The government abandoned a criminal case against Mozilo three years ago, but now looks to sue Mozilo and up to 10 other Countrywide employees under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), Bloomberg reported.

Mozilo has already paid a $67.5 million penalty to the Securities and Exchange Commission, in a 2010 deal that didn’t require him to deny wrongdoing. Between 1999 and 2008, Mozilo made $535 million. The comparison between the SEC penalty and Mozilo’s net worth fueled criticism that the architects of the financial collapse were mostly untouched by the meltdown, according to Bloomberg.

Countrywide’s sales of shoddy mortgage-backed securities helped kickstart the crisis. Bank of America’s recent $17 billion settlement with the government revolved largely around toxic loans sold by Countrywide, which the bank acquired in 2008.

Mozilo, however, has been unapologetic, according to Bloomberg. In a 2011 deposition, the Countrywide co-founder said he had “no regrets” about how he ran the company, and claimed the financial meltdown was a “cataclysmic situation, unprecedented in the history of this country” that his company didn’t cause.


  • by Former Countrywide Manager | 8/21/2014 10:58:20 AM

    Let it go, he paid his penalty.

  • by dirkallenmtg | 8/21/2014 11:08:02 AM

    When are they going to start investigating Wells Fargo and the people in that organization? Notice how they are going untouched? Looks like Warren and these govt. agencies are in bed together!!! Mazillo and Stump created this whole mess and yet only one goes punished. Jamie Dimon does not take any govt money in bailout, keeps the company afloat he got his ass handed to him, but he did the right thing by not putting a burden on the tax payers by taking the bailout.

    They must need more money for the Obama care debacle so this is where they are trying to get it from!

  • by wake up america | 8/21/2014 11:13:04 AM

    Really!!, What about Barney Frank and Chris Dodd who were overseeing this for the government and their agency's. How about all the scum that's in office right now. IRS chief, Eric Holder, Hillary Clinton, a our Prez. This is a joke!


Should CFPB have more supervision over credit agencies?